Blocknet Alleges Binance DEX Contains Stolen Technical Data from Its BlockDX Decentralized Exchange

The Binance DEX, which launched yesterday was one of the most anticipated launches in the crypto calendar for 2019 but now, is coming under scrutiny for allegedly being built using stolen information.

According to reports, Binance tricked several smaller crypto projects into giving them sensitive information which they then used for the Binance DEX without giving credit or compensation to the original owners.

Evidence Behind The Accusation

These new claims come courtesy of Tyler Swope from the Chico Crypto Youtube Channel. According to him, one of the victims of this practice was Blocknet, a second layer blockchain interoperability protocol which has its own decentralized exchange called BlockDx.

The project had hoped to get listed on Binance and applied in August 2018, filling out the standard form and answering a series of questions about their project and team. The initial form filled was the standard one that was given to all applicants. However, Blocknet received an email from Ashley Ouyang, Binance’s head of business development, who asked them some more in-depth questions about their project which they answered. After this, they got no more word from the Binance team.

The silence ticked off suspicions among members of the Blocknet team who then looked over the questions they had been asked and realized them just how intrusive they were.

Some of the questions included Blocknet’s interoperability infrastructure and whether their code was on GitHub, why Blocknet chose to build their DEX, How Blocknet intended to solve the domain name system problem in the blockchain and If Binance could receive access to BlockNet’s private repository to view their latest developments.

Binance made the announcement about their DEX five months before Blocknet applied to their platform so it is believed that these questions were a way for Binance to scout the competition ahead of time.

Also, when the second application is looked at closely, several developers form Binance such as Nigel Yee and ‘CC’ were involved in composing the technical questions that the team was asked. Also, the team believes that Erick Zhang, the CTO of NEO, is involved as well as he is the one who developed the NEO’s dBFT (delegated byzantine fault tolerance) consensus.

Also, Zhang is shown in the uploaded video asking several questions about the Blocknet infrastructure and how the team addressed the various challenges they faced.

He also asked about the storage solutions used by the Blocknet team, which isn’t surprising because both NEO and Binance have struggled with story problems in the past and Zhang is an angel investor in Binance as well as being CTO of NEO.


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