The world’s largest exchange believes criminals may widely use the feature to withdraw their ill-gotten funds.
Due to security concerns, the world’s largest cryptocurrency exchange Binance has announced that it will not be supporting the deposits and withdrawals of Litecoin (LTC) utilizing the Mimblewimble Extensions Block (MWEB) function.
The largest cryptocurrency exchange by daily trade volume noted on Twitter today that LTC deposits made using the MWEB function will either be returned or not deposited in the receiver’s wallet because of the inability to verify the senders’ address.
#Binance will not support the deposits and withdrawals of @litecoin $LTC utilising MimbleWimble Extension Blocks (MWEB).https://t.co/YZRrIgXJzF
— Binance (@binance) June 13, 2022
Binance added that users may lose their funds if they use the MWEB function to transfer Litecoin from an external wallet to the exchange.
“To ensure the security of your funds, please do not deposit LTC through the MWEB function,” Binance said in a statement.
The development was also shared on Twitter by the popular cryptocurrency media outlet Wu Blockchain.
“Binance announced that it will not support the deposit and withdrawal of Litecoin through the MimbleWimble Extension Blocks (MWEB) function. Previously, the Korean exchange said that it would stop LTC trading because of MWEB’s anonymous function.”
Breaking: Binance announced that it will not support the deposit and withdrawal of Litecoin through the MimbleWimble Extension Blocks (MWEB) function. Previously, the Korean exchange said that it would stop LTC trading because of MWEB’s anonymous function. https://t.co/Wv4pG0E9HC
— Wu Blockchain (@WuBlockchain) June 13, 2022
Motive Behind the Move
The exchange has decided not to accept LTC transactions using the MWEB function due to the surging rate of criminal activities in the cryptocurrency space.
In recent times, there have been numerous incidents of crypto heists, running into millions of dollars. While hackers have been lucky in stealing unsuspecting victims’ funds, the issue these malefactors have faced has always been withdrawing the funds.
Binance fears that the feature launched by the Litecoin Foundation will be widely adopted by criminals looking for ways to withdraw their stolen funds.
South Korean Exchanges
Meanwhile, Binance is not the only exchange that has expressed concern about the new Litecoin feature. Since the initiative was launched, five Cryptocurrency exchange-based in South Korea, including Korbit, Coinone, Upbit, Bithumb, and Gopax, have noted that they may delist the coin from their trading platforms after the LTC’s MEWB update.
Litecoin MWEB
The Litecoin WimbleWimble Extension Block is an upgrade launched by the Litecoin Foundation with the aim of improving users’ privacy and scalability.
With this function, Litecoin users can send funds from their wallets to any address without including their own details, thus making transactions opaque.
– Advertisement –
Source: https://thecryptobasic.com/2022/06/13/binance-decline-support-for-litecoin-ltc-mimblewimble-extension-block-mweb-transactions/?utm_source=rss&utm_medium=rss&utm_campaign=binance-decline-support-for-litecoin-ltc-mimblewimble-extension-block-mweb-transactions