• Binance customer lost money in a P2P transaction after the buyer reported it as fraud.
• The exchange asked him to contact law enforcement for help and allegedly deleted his inquiry without explanation.
• Signature Bank recently announced it will not handle SWIFT fiat transfers below $100K starting Feb. 1, which could affect thousands of Binance customers.

Binance Customer Loses Money in Fraudulent P2P Transfer

A Binance customer, abd_akiki, recently posted an inquiry regarding lost funds due to a fraudulent P2P transfer on Reddit. The user had received payment into their bank account via e-Transfer but several days later, the account was frozen after the buyer reported the transaction as fraud and the money was returned to them.

Binance Allegedly Deletes Inquiry

The user then turned to Binance for assistance but they claimed they couldn’t do anything since there were no funds in the buyer’s account since he’d withdrawn everything instead asking him to contact law enforcement for further assistance. However, moderators on the r/Binance page allegedly deleted abd_akiki’s post without any explanation, raising concerns among users about how their inquiries are handled by Binance.

Signature Bank Limits SWIFT Transactions for Crypto Customers

The issue is particularly pertinent given that many of Binance’s retail customers with USD-held bank accounts may soon have to rely on P2P transfer services as Signature Bank (SBNY) recently announced it would not handle SWIFT fiat transfers below $100K starting Feb. 1st, potentially affecting thousands of users who buy and sell crypto with or for USD.

Consequences of Lost Funds

It remains unclear if abd_akiki’s issue has been resolved or if other customers have experienced similar losses when making P2P transactions on Binance or other exchanges. Furthermore, this incident highlights potential risks that come with buying and selling cryptocurrencies without sufficient protection from banks or crypto exchanges themselves like insurance policies against fraudulent activities and hacks of personal wallets which can lead to significant financial losses in some cases..


Ultimately this story shows just how important it is for cryptocurrency traders and investors to take measures like using trusted services such as escrow accounts when transferring large sums of money online; this allows all parties involved in a transaction to be protected should something go wrong during a trade or purchase process.