Binance CEO Richard Teng has warned about a “new scam” targeting cryptocurrency users. The scheme, known as the “Share-Seed-Phrase” scam, is rapidly gaining traction.

A new scam is on the rise. The "share-seed-phrase" scam tricks users into sending funds to "safe" wallets controlled by scammers.

Stay vigilant and never share your private information! ⚠️
— Richard Teng (@_RichardTeng) February 18, 2025

Teng explained that scammers send fake notifications claiming a wallet has been compromised. The message urges users to “secure” their funds by providing them with a seed phrase to a wallet controlled by the fraudsters.

Victims often act impulsively without verifying the authenticity of the alerts, Binance noted in a blog post. By the time they realize the deception, the stolen funds are irretrievable.

Binance reminded users that the exchange never requests private keys or seed phrases. They also stressed the importance of verifying sources, urging users to confirm any urgent security notices through Binance’s official channels.

Previously, researchers at Kaspersky Lab uncovered a similar scheme in which scammers posted wallet addresses and seed phrases in YouTube comments.