Binance's indecision to freeze BNB wallets drew controversy in this $11M rug pull
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In January 2021, PopcornSwap rug pull on BNB Chain scammed users out of $2 million. The scammer's wallet grew to $10.8 million as BNB increased in value.
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Victims asked Binance to freeze the scammer's funds, but Binance said it couldn't due to BNB Chain's decentralized nature.
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In October 2022, Binance proposed and validators agreed to freeze the scammer's funds, nearly 2 years after the incident.
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Binance confirmed it can freeze BNB Chain addresses with validator consensus, contradicting past decentralized claims.
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The PopcornSwap scam shows risks of using smart contracts and difficulty getting reimbursement after an exploit due to blockchain immutability.