As cryptocurrency trading in Pakistan rises, platforms like Binance P2P have become essential for buying and selling USDT using local banks like United Bank Limited (UBL). However, with popularity comes increasing risks, and a complex scheme is targeting Pakistani users, causing significant losses in PKR. This article aims to educate and keep you safe while trading on Binance P2P. Remember, knowledge is your best defense against fraudsters.
How the scheme works
Fraudulent merchants are exploiting vulnerabilities in the Binance P2P system to scam buyers and sellers. Here are details of their strategies:
High volume sell ads: Scammers deposit more than 10,000 USDT in their wallets and post attractive sell ads for USDT. They often use UBL for transactions, require multiple verifications on ads, and set a minimum order limit of 500,000 PKR to target large transactions.
Establishing false trust: When you place an order, the merchant demands additional verifications (like ID proof or selfies) to appear legitimate. They then move the conversation to WhatsApp, provide bank details, and urge immediate fund transfers—without confirming the order on the Binance app.
Trap: After you make your payment and attempt to mark the order as 'paid', the merchant ignores verification, causing the order to automatically cancel while the money stays with them. They repeat this with 5-6 buyers, quickly reclaiming their 5,000 USDT security deposit.
Exploitation of buy orders and quick features: These scammers also run buy ads, acquire USDT, and instantly transfer it via TRC20 to exchanges like OKX, Bybit, or MEXC. For smaller orders, they use 'quick cancel' after payment or disappear after obtaining funds via 'quick receive'. The appeal process takes more than an hour, giving them time to withdraw funds.
Widespread impact: Not just buyers, USDT sellers are also affected. When scammers buy USDT using third-party accounts, victims report to banks, resulting in sellers' accounts being frozen. Losses can exceed 40,000 USDT, reaching up to 80,000 USDT, affecting both parties.
Transfers on non-merchant accounts: When close to getting caught, scammers switch to regular user accounts (can post ads after completing 20 trades). They buy USDT at expensive rates (like 310-315 PKR when the market is at 290 PKR) with large volumes (>10,000 USDT), accepting third-party payments through UBL—avoiding legitimate traders.
Recent suspensions of accounts on Binance are linked to unresolved disputes related to this scheme, as fraudsters do not care about losing deposits while they have already stolen more.
Red flags to watch out for
Beware of merchants who insist on external communication like WhatsApp before confirming the order.
Avoid unusually high buy rates or large volumes from non-merchants who accept third-party payments.
Merchants who only use UBL and demand payment without app verification.
Pressure for immediate payment without standard P2P measures.
How to keep yourself safe
Stay on the app: Always communicate and confirm orders within the Binance app. Never switch to WhatsApp or other apps.
Verify merchants: Check compilation rates, reviews, and avoid suspicious high limits or UBL-only payments.
Use small test orders: Start with a small amount to test credibility.
Report suspicious activity: If scammed, appeal immediately and report to Binance support. For banking issues, contact your bank.
Advocate for changes: Binance can help by removing 'quick cancel/release' options, tightening merchant verification, and introducing delays in withdrawals.
As Pakistani traders, we are building a strong crypto community—let's keep it safe. If you've seen this scheme, share your experiences in the comments (anonymously if necessary) to warn others. Stay alert, trade smart, and advocate for a secure P2P ecosystem!