Binance, the world’s largest cryptocurrency exchange by trading volume, made a statement for the popular altcoin Litecoin (LTC). Here are the details…
Binance does not accept LTC deposits through MimbleWimble
As we have also reported as Kriptokoin.com, Litecoin has processed a privacy update, MimbleWimble. The world’s largest exchange believes that criminals can widely use this feature to withdraw their ill-gotten funds. Due to security concerns, the world’s largest cryptocurrency exchange Binance has announced that it will no longer support Litecoin (LTC) deposits and withdrawals using the Mimblewimble Extensions Block (MWEB) function.
The largest cryptocurrency exchange by daily trading volume is on Twitter today that LTC deposits made using the MWEB function will be returned to the recipient’s wallet because the sender’s address cannot be verified, or He said he would not be deposited. Binance added that users could lose their funds if they use the MWEB function to transfer Litecoin from an external wallet to the exchange. “To ensure the safety of your funds, please do not deposit LTC through the MWEB function,” Binance said in a statement. The development was also shared on Twitter by popular cryptocurrency media outlet Wu Blockchain. WuBlockchain’s tweet uses the following phrases:
Binance has announced that it will not support deposits and withdrawals of Litecoin through the MimbleWimble Extension Blocks (MWEB) function. Earlier, many South Korean exchanges had said that they would stop trading LTC due to the anonymous function of MWEB.
Cryptocurrency scams increased
Due to the rise of criminal activity in the cryptocurrency space, the exchange has decided not to accept LTC transactions using the MWEB function. Recently, there have been numerous cases of crypto heists reaching millions of dollars. While hackers have been lucky in stealing funds from unsuspecting victims, the problem faced by these malicious people has always been to withdraw funds.
Binance fears that the feature, launched by the Litecoin Foundation, will be widely adopted by criminals looking for ways to withdraw their stolen funds. Meanwhile, Binance isn’t the only exchange voicing concerns about the new Litecoin feature. Since the initiative was launched, five South Korean-based cryptocurrency exchanges, including Korbit, Coinone, Upbit, Bithumb, and Gopax, have stated that they will be able to remove cryptocurrencies from their trading platforms after LTC’s MEWB update.
Litecoin WimbleWimble Extension Block is an upgrade initiated by the Litecoin Foundation to improve users’ privacy and scalability. With this function, Litecoin users can send money from their wallets to any address without entering their own information, thus rendering transactions opaque.
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