Binance announced on Wednesday that they have successfully returned $ 344,000 in funds from the Wine Swap fraud attempt, the Binance Smart Chain (BNB) project.

Wine Swap is an automated market maker platform similar to Uniswap launched on October 13th. Within an hour of launch, it raised $ 345,000 in funds that were immediately debited from the platform by the creators of Wine Swap.

The money was then distributed across multiple lines in an attempt to get it out of Binance’s smart grid. Most moved to the Ethereum blockchain, although some were also sent to the Binance Central Bridge and two other exchanges. Binance said it froze immediately.

Later, the Binance team was able to identify the creators of Wine Swap through chain analysis. Then the criminals returned the money after learning about the arrest.

It is expected that the funds will be returned in their original denomination after the alleged fraudsters transfer some of them to other codes.

The story is not much different from DeFi hacks like the dForce or bZXs hack in September. In all cases, the perpetrators were arrested through circuit analysis or other external factors.

Binance confirms that it cannot control funds on Binance’s smart chain, even by freezing them. The company controls only those who gain access to the exchange.

This incident shows how Binance Smart Chain hackers and scammers can avoid takeover by using some decentralized bridge options.

However, the Smart Chain ecosystem remains lonely: Binance largely controls validation through its BNB stake, and bridges seem to create a useful bottleneck for improving chain traceability.

Binance Smart Chain is a contract-activated smart blockchain launched by Oslo Bors. It is fully compatible with the Ethereum virtual machine and is part of a decentralized finance process, which Binance CEO Changpeng Zhao called “centralized decentralized finance.”

Source: CoinTelegraph