Binance Bans Hundreds Of Users Over Trading Abuse

Binance announced it banned more than 600 user accounts on its Binance Alpha platform for exploiting the reward structure through coordinated bot activity. Binance Alpha is designed to highlight early-stage Web3 projects, and the abuse involved users deploying bots to mass-farm Alpha points, which determine access to token sales and airdrops, thus dominating allocations.

In response, Binance upgraded its monitoring tools and introduced a whistleblower system allowing users to report suspicious accounts for a reward of up to 50% of recovered funds if the reports include verifiable data. However, this move has generated criticism, with some analysts arguing that it shifts the ecosystem from social farming toward surveillance and distrust, potentially creating a "police state" environment.

The exchange affirmed that violating its Terms of Use leads to permanent suspension and loss of rewards, signaling an effort to rebuild user trust by prioritizing integrity following recent technical disruptions.

(Source：BeInCrypto)