Binance And NEO Accused By Blocknet Of Stealing Info

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binance and neo stealing info

Binance and NEO Accused By Blocknet For Stealing Info Used To Build Binance DEX

Binance, among the most significant and most trusted exchanges in the crypto space, may have a dark side to how they’ve obtained details necessary to develop their extremely expected decentralized exchange (DEX).

Binance officially introduced their DEX just the other day. However, new proof has come out that represents Binance as misusing their power as a highly popular exchange to deceive eager crypto projects into sharing delicate info about themselves to get listed. These projects would then be disregarded, and their applications are forgotten when Binance had actually received all the info they wanted from them.

  • New suspects that Binance may be using their exchange listing application process as a way to steal information from unsuspecting competitors eager to be listed on their exchange.
  • Blocknet revealed that Binance asked highly technical questions about their code and development process, possibly as a way to get information to develop their newly released DEX.
  • Evidence shows that NEO co-founder Erick Zhang was involved in the questioning process, perhaps looking to acquire data to further the development of NeoFS’s storage solution.
  • However, whether the suspects are correct, Blocknet had known that Binance were planning their DEX before contacting the exchange for the first time.

Binance Seeks for Blocknet Technical DEX Info

According to Tyler Swope from the Chico Crypto Youtube Channel, this is precisely what took place at Blocknet, a 2nd layer blockchain interoperability procedure. The project has its DEX, named BlockDX.

Like others, it was likewise one of the projects that many individuals in the crypto space have actually been hoping would be noted on Binance.

Well, Blocknet did apply to be listed on Binance’s Exchange on August 2018, submitting the standard online application. The project followed the typical procedure, which includes addressing a series of easy questions about the group, nature of the project, target industry, etc

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Binance listing application. Source: ChicoCrypto Youtube Channel

These are standard non-intrusive concerns that Binance asks all projects applying to be listed. Nevertheless, when it came to Blocknet, apparently these basic questions were not enough to examine their application; Binance’s head of company development, Ashley Ouyang, had then sent an e-mail to Blocknet with an extra application form that included more questions.

Blocknet submitted the form and responded to Ashley the very next day. Then over a month went by without any response from Binance.

The radio silence from Binance appeared suspicious to Blocknet, and they started reviewing the questions they had actually responded to in the 2nd application. Only then they realized just how much more intrusive the questions were, that made them a lot more suspicious.

A few of the many questions in the 2nd application consisted of information on:

  • Blocknet’s interoperability infrastructure and whether they could find the code in their GitHub.
  • Why Blocknet chose to build their DEX
  • How Blocknet solves the domain name system problem in the blockchain
  • If Binance could receive access to BlockNet’s private repository to view their latest developments
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The questions Blocknet were asked by Binance. Source: ChicoCrypto Youtube Channel

As we already pointed out, when Blocknet addressed all of these questions and sent the application, Binance cut off all interaction with them and would not respond anymore.

Given that Binance announced that they would be releasing their DEX on March 2018 (5 months after Blocknet’s application), some concerns are raising whether or not Binance was attempting to collect as much details about their competitors to assist in fastracking Binance DEX development process.

NEO plays a role in the deception to gain info about a storage solution

Additional evidence of this claim can be discovered in the identities of individuals involved in the communication between Binance and Blocknet.

On the 2nd application, Blocknet revealed that many Binance developers (such as Nigel Yee and ‘CC’) contributed to making up the more technical questions that Blocknet answered. However the most surprising of all, Blocknet suspects that Erick Zhang, the CTO of NEO, was also involved. Zhang helped in creating NEO’s dBFT (delegated byzantine fault tolerance) consensus.

As can be seen on Blocknet’s video, Zhang is the one asking questions about their Github repo, facilities, how they fixed their DNS problem and if they might elaborate on their blockchain based storage option.

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Erick Zhang on Binance whitepaper. Source: ChicoCrypto Youtube Channel

The storage solution question is critical since NEO has been looking to develop a storage solution for NeoFS, while Binance has been looking for the same solution for their DEX. Erick Zhang is also an angel investor in Binance, which explains his willingness to collaborate with Binance in providing information from DEX platforms like Blocknet to benefit his project NEO and Binance.

Shocking News or Innocent Behaviour?

Eventually, this is stunning news due to the fact that Binance has actually built up such a strong track record for being highly reliable and ethical in their organisation transactions so far. If these accusations are true, then it’s a red mark for future projects wanting to get noted on Binance and sharing personal information.

If during the application procedure it ends up being apparent that they have even a minor one-upmanship over the exchange, they might be forced to provide Binance more info or face being declined. When it comes to Blocknet, likewise when they did comply and supply all the info they were requested, they were still dismissed.

Although we can state that Blocknet was naive in presuming that the sensitive info they exposed would only be used to examine their listing application, it’s clear that even they were caught blindsided by the shady practices of crypto’s most “trusted” exchange, Binance.

Binance: DEX Plan Were Publicly Announced

However, whether or not Blocknet’s suspicions are right, the facts are that it’s widely known that Zhang is an advisor for Binance, so no doubt he will help the exchange where he can. Likewise, Binance revealed openly that they are constructing a DEX even before Blocknet approached them for the very first time. If they were afraid of competition, Blocknet did not have to contact Binance for any reason, and certainly not to disclose any private technical details.

The Post Binance and NEO Accused By Blocknet For Stealing Info Used To Build Binance DEX appeared first on CryptoPotato.

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