Risks of Unauthorized AI Trading Bots Highlighted by Binance

Binance Blog published a new article, revealing insights into the risks associated with unauthorized AI trading bots and automated tools. The article aims to inform users about the severe financial, compliance, and legal risks these tools pose, including the potential for complete asset loss. It emphasizes that granting account access to unknown third-party applications can lead to remote manipulation, unauthorized trading, and irreversible losses, even for experienced users. Unauthorized tools violate Binance’s Terms of Use, which may result in reward revocation, account restrictions, or suspension, with no official support for any resulting losses. The article warns that shortcuts in financial markets often come with hidden dangers. Promises of “easy gains” or “zero-effort rewards” can tempt even seasoned users, but quick wealth can disappear just as fast. Sustainable gains are achieved through discipline, risk management, and secure practices rather than unverified bots. Recent reports indicate a surge in losses linked to unauthorized automated tools, underscoring how “convenience” can mask serious threats. During a period of less than two weeks in November 2025, Binance’s risk team received 12 confirmed reports of hacked accounts, with total losses exceeding 18,000 USDT. These incidents had one thing in common: the use of third-party automated trading tools to exploit Binance Alpha rewards. These tools provided attackers with an opportunity to drain funds or take over accounts. The attacks followed two main vectors. In one case, tech groups targeted Binance Alpha users, diverting funds via wash trading. Investigations revealed that certain groups used complex options trading techniques to siphon funds from users who had purchased automated trading tools. Binance intervened swiftly, freezing counterparty accounts and recovering some stolen assets. In another case, a financial risk professional was targeted after using a popular automated trading bot. Despite their expertise, the lure of quick profits led them to authorize the tool repeatedly, triggering abnormal account activity and putting their assets at risk. Binance intervened quickly, freezing the account and assisting with security upgrades. This case highlights that no one is immune to manipulation when shortcuts promise easy money. The article advises against authorizing unknown third-party applications to access financial accounts, regardless of skill level. The article outlines the dangers of unauthorized trading bots, including financial security risks, compliance risks, legal risks, and the lack of official support. It stresses the importance of a strong protection framework, incorporating best security practices such as enabling two-factor authentication, using passkeys, and employing physical security keys. Regularly reviewing account activity and reporting suspicious actions to Binance Support are also recommended. The article concludes by emphasizing that every shortcut that hands control of an account to an unknown tool is a direct threat to security. Unauthorized bots can compromise principal, account integrity, and legal standing. The safest path is to rely only on official Binance tools, follow the outlined security framework, and treat any request for account access with skepticism. By staying disciplined, vigilant, and informed, users can protect their funds and participate in the crypto ecosystem with confidence.