TL;DR
- Binance founder CZ warns about the high incidence of rug pulls and fraud in the memecoin market.
- The crypto leader emphasizes the need to “Do Your Own Research” (DYOR) before risking capital.
- The warning aims to protect new users attracted by the high volatility and hype of these tokens.
A serious warning was issued by the founder and CEO of Binance, Changpeng Zhao “CZ.” The CEO addressed the cryptocurrency community and warned about the dangers inherent in the speculative memecoin market.
Against a backdrop of euphoria and high volatility, CZ highlighted the worrying rise of memecoin scams, noting that many retail investors are exposed to catastrophic risks.
Zhao’s message underscores a growing concern in the industry for user protection against fraudulent projects. He warned that a large number of these tokens are created with malicious intent, specifically designed to attract capital quickly before the developers disappear with the funds, a practice commonly known as a rug pull.
Swift Response and the Link to ‘Inferno Drainer’
Blockchain security firm SlowMist tracked the operation to a phishing domain almost identical to the official BNB Chain website, differing by only a single character. Researcher 23pds from SlowMist linked the domain to the notorious ‘Inferno Drainer’ group, known for developing wallet-draining templates and running large-scale phishing schemes since 2022.
Following the breach, CZ confirmed that Binance’s internal security team collaborated directly with X to suspend the account and remove the malicious domains. “The BNBCHAIN account is compromised… DO NOT connect your wallet,” Zhao posted, reiterating the importance of caution (SAFU) even when the information comes from supposedly official accounts.
CZ’s warning highlights how phishing alerts driven by the memecoin boom have become more sophisticated. Attackers no longer rely solely on emails; they now use the credibility of brands, influencers, and verified accounts as their main bait.
The BNB Chain incident is not isolated and adds to a growing list of high-profile social media breaches during 2025. Accounts like Pump.fun, PancakeSwap (its Chinese version), and even that of a WIRED journalist were hijacked to promote fraudulent meme coins, some of which generated millions in trading volume before being stopped.
The scope of these attacks has expanded beyond crypto-native accounts. The official DOTA 2 YouTube channel, profiles of politicians like former Ghanaian President John Mahama and British Minister Lucy Powell, and even the venture capital firm Andreessen Horowitz (a16z) and Paraguay’s President Santiago Peña, have been compromised to promote scams or spread false information, demonstrating the breadth of this threat.
