Richard Teng, Binance CEO, the world’s largest crypto exchange, has recently warned about increasing frauds in the field of crypto. However, this time Richard Teng warned a new fraud that allows them to deceive the victims and transfer their funds to the wrong hands. Teng called it “seed sharing” fraud. That’s how this scammer defrauded the victims.

Binance CEO warned: Attention!

According to CEO Richard Teng, this fraud is working by sending users’ fake warnings claiming that their wallets have been seized. In order to “protect their funds ,, the victims are asked to transfer their presence to a different wallet controlled by the fraud.

Source: Richard Teng X post

Fraud is particularly effective because it hunts users’ feelings. Panic and urgency, basic tools for fraudsters. The victims, who are concerned about losing their existence, are in a hurry to apply instructions without questioning their reality. Unfortunately, when they realize that something is going wrong, they’re too late to revers the damage.

How do you protect yourself from fraud?

So, how can you avoid falling into this trap? Richard Teng gives a very important advice: start with skepticism. Frauds often use fear and urgency to push their victims to a hurry to behave. If you receive a message claiming that your wallet is seized, pause. Take a deep breath. Think before you take action.

The first thing you need to control is the source. Binance or any reputable platform will never want your special keys or seed sentences. No legitimate security warning will tell you to send assets to a wallet address you do not know. If you receive such a request, this is a clear sign of danger.

Some red flags to be kept in mind

Frauds often use time pressure to force you to move fast and make hesitation feel that it can lead to financial disaster. This is another important red flag. If you are not sure of any warning, the best approach is to verify the warning directly through the official channels of Binance. Contact customer service to ensure that the warning is legal before doing any action. In short, be cautious, do not rush, and always check the source of any emergency demand twice. By doing this, you can protect yourself and your funds from the increasing threat of crypto fraud.