Binance’s Response to XIRTAM Incident: Will Initiate Direct Compensation for Victims

Last month, crypto KOL “Joe” posted that the XIRTAM project team had run away and transferred the 1,909 ETH raised to Binance, which has helped freeze the funds. Binance has called on victims to keep evidence and report to the police and contact customer service.

Today, Binance responded to the event that XIRTAM had stored Rug Pull funds on its platform, and said that they are doing their best to allow victims of the XIRTAM project to claim their losses directly from the smart contracts deployed on the Ethereum and Arbitrum networks in Binance, and plan to prepare this claim as early as today.

Although similar Rug events are happening frequently, allowing users to directly claim lost funds is still the first time. In the past, Binance’s attitude towards Rug projects and hacker incidents has been mainly to freeze funds. For example, in November 2019, Upbit lost 342,000 ETH worth $50 million in a hacker attack, and then 137 ETH were transferred to Binance. CZ responded that the assets had been frozen and cooperated with Upbit to verify and report to law enforcement agencies, and the funds would be transferred; On January 16 this year, CZ tweeted that the Binance team detected the transfer of Harmony hacker funds, and the Harmony hacker had previously tried to launder money through Binance. Binance has frozen his account. In addition, he said, “He used Huobi this time, and we assisted the Huobi team in freezing his account and recovered a total of 124 bitcoins.”

In addition, Binance also has a precedent for helping users recover Rug funds. In October 2020, the AMM platform Wine Swap took away all the funds within an hour of launching on the BSC chain, causing users to lose more than $345,000. Affected users sent 19 different tokens from 119 different addresses to Wine Swap. After the project ran away, the remaining funds in the contract were transferred to the creator’s address. The day after the scam occurred, Binance found the edge information of the fraudster and contacted the fraudster to request the return of the funds after confirming the evidence, and helped users recover 99.9% of the lost funds, totaling more than $344,000.

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