The frozen accounts are suspected of bagging Lista Megadrop rewards via malicious practices. The recovered funds will be used to reward its genuine users. Binance noted that the Lista Megadrop event had over one million participants. However, Binance’s risk control system identified 102,000 accounts as fraudulent.

Following further verification of account consolidation activities and other suspicious behaviors, Binance confirmed and banned 297 main accounts.The Binance Megadrop feature was designed to reward users for completing simple tasks and locking in their BNB holdings. Moreover, Lista was featured as the second token in the Megadrop series. Lista is a liquid staking and decentralized stablecoin protocol, and Binance was the first exchange to list the Lista stablecoin as the airdrop went live.

The recent move has highlighted the exchange’s commitment to maintaining the integrity of its platform and rewarding genuine users. According to reports, individuals exploited multiple Binance accounts to maximize their rewards from the Lista Megadrop event. Moreover, after receiving the rewards, these users consolidated the funds into single accounts and sold them.

These actions prompted Binance to freeze their assets and demand refunds. Binance’s terms and conditions for the Megadrop explicitly prohibit malicious behavior. These include volume manipulation, bulk registration of small accounts, and self-trading, all of which would be subject to strict audits and potential action. In response to the situation, Binance confirmed the authenticity of these claims. The team revealed that some individuals had purchased large numbers of KYC (Know Your Customer) verified accounts in bulk to obtain the Megadrop rewards. “After being flagged by the system’s risk control, they attempted to consolidate the funds into one account to evade detection, which triggered another risk control measure, leading to a freeze,” Binance explained.

The exchange underscored that several main accounts were banned. Furthermore, it revealed that one account consolidated up to 9,000 KYC-verified accounts. The crackdown was part of Binance’s ongoing efforts to leave benefits for genuine users. “Funds recovered from malicious bot accounts will continue to be used for project activities to reward real users,” Binance stated.

The exchange added, “We will continue to take strict action against these malicious bot accounts that harm the interests of genuine users and project partners, without compromise.” The crypto exchange emphasized that its risk control measures are designed to target only fraudulent accounts. In addition, it assured genuine users that they need not worry. Furthermore, the exchange invited users who believe their accounts have been misjudged to file appeals through its online customer service platform, promising to resolve any issues as quickly as possible.