Binance’s BNB Chain has warned the worldwide cryptocurrency community about many malicious dApps using its infrastructure. The BNB Chain, now home to several dApps, has upgraded its “Red Alarm” list to include the names of 191 dApps that may expose users to financial danger. The dApps deemed malicious include Cineru, The Bandit Project, Sezams, The Cake Monster, Shorter Finance, and OnlyBrain. Some of the reasons BNB Chain has flagged some dApps as suspicious include inactivity on social media platforms like Twitter and a lack of a regularly updated website.
According to a post on the BNB Chain’s official blog, “many times the contracts of these dangerous dApps do not correlate with their promised functionality, putting users at risk of losing cash.” Unwary investors have more opportunities to lose money since several of the dApps included in the Red Alarm index have been linked to rumours of supplying fraudulent tokens or excessive tax costs.
Several of the listed dApps have ties to the cryptocurrency mixer Tornado Cash, which is under intense US investigation for facilitating the distribution of illicit tokens to untraceable wallets. They include Piston Token, CycGo, and Shorter Finance. An investigation by BNB Chain suggests that Tornado Cash assets support these applications.
Taking leverage of the popularity of ChatGPT, fraudsters have released several imitation dApps with similar names and functions. The Red Alert list, which alerts the crypto community to potential threats on the blockchain, is updated weekly on Fridays, according to the blockchain’s blog.
High-risk dApps on the BNB chain, such as those flagged as frauds or rip-offs, are shown on the Red Alert list. DappBay adds new high-risk projects and decentralised apps to its Red Alarm every Friday. Changes the list to reflect current events. The official site notes, “Users may filter dApps by category, date uploaded to Red Alarm, or user count to help traverse the increasing list.
