Crypto Exchange Binance Introduces Automated Smart Contract to Reimburse Users
Binance, a leading cryptocurrency exchange, has developed an automated smart contract to compensate users affected by the Xirtam rug pull incident. If you were impacted by this event, you can recover your funds by following a few simple steps. Firstly, connect your wallet to Etherscan and pass a verification check. Once verified, you can call the claim function through the contract address. Please note that you must have submitted your application by August 2nd to be eligible for reimbursement.
In response to the Xirtam incidents, Binance initiated an investigation and promptly took action to freeze the suspected fraudulent funds. The exchange is fully committed to resolving this issue and appreciates the patience and understanding of its users.
The Xirtam Rug Pull and Its Consequences
Xirtam, which operates on Arbitrum, managed to raise approximately 1,909 Ether (ETH) or $3.2 million in user deposits through various fundraising rounds. Unfortunately, the project owners orchestrated a rug pull, draining all assets from the Xirtam smart contract. However, all stolen funds were directly deposited onto Binance, leading the exchange to freeze the assets on May 4th. Notably, no mixer or bridging service was utilized to launder the funds prior to their deposit on Binance.
One notable incident involved the cancellation of a scheduled Xirtam token initial airdrop offering (IAO) by decentralized exchange (DEX) AlienFi. They discovered an undisclosed Xirtam seed sale that occurred below the negotiated price. This cancellation took place mere minutes before the IAO was set to begin.
Hot Take: Binance Takes Swift Action to Support Users
Binance’s introduction of an automated smart contract demonstrates its commitment to customer satisfaction. By promptly freezing the fraudulent funds and providing a clear reimbursement process, Binance aims to protect its users and restore trust in the crypto community. This proactive approach sets a positive precedent for other exchanges, fostering a safer and more reliable environment for cryptocurrency transactions.
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