Changpeng Zhao, the CEO of Binance, recently shared a shocking incident involving the kidnapping of executives from a client company during a business trip in Montenegro. The abducted executives were coerced into emptying their crypto wallets, resulting in a loss of $12.5 million, with most of the funds being Tether USD (USDT) stablecoin.
The criminals behind the operation then moved the stolen funds to a Tron wallet, but Binance acted swiftly to freeze $11.8 million of the stolen amount, successfully recovering 94.4% of the total stolen funds. This was a significant achievement, leaving only $700,000 with the fraudsters.
Many members of the crypto community were impressed by Binance’s ability to recover the stolen funds, while others questioned why this was possible in the cryptocurrency space but not in traditional financial systems. In response, Zhao explained that cryptocurrencies cannot be frozen unless they are moved to centralized platforms like Binance.
This incident is not the first of its kind in the cryptocurrency space. Earlier in the year, a Dubai-based crypto portfolio manager was kidnapped and extorted while on vacation in Spain. He was taken hostage by his new colleagues after spending several days socializing with them. After being lured to a luxury villa, he was held captive and a ransom of €1 million was demanded for his release.
These incidents highlight the dangers and risks associated with holding significant amounts of cryptocurrency and serve as a reminder of the importance of safety and security in the digital asset space. Binance’s successful recovery efforts are commendable, but they also underscore the need for increased vigilance and caution when dealing with cryptocurrencies.