Binance Secures Over $73M in Funds Stolen from External Parties

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Aug 08, 2024, 08:00 ET

Binance leaps into action to support other industry players and users; surpassing 2023 totals as market sees an influx of users new to crypto investing

DUBAI, UAE, Aug. 8, 2024 /PRNewswire/ -- Binance, the leading blockchain ecosystem behind the world's largest crypto exchange by trading volume, is proud to share that its security team has recovered or otherwise frozen over $73 million in user funds from external hacks as of July 31 this year. This surpasses the approximately $55 million secured throughout 2023.

Through proactive efforts within the company to support and collaborate with other industry players and users, Binance has been successful in helping users recover misplaced and lost digital funds, as well as freezing and clawing back ill-gotten funds should they make their way to the Binance platform. Binance also collaborates closely with the public sector to ensure that affected users get the help they need. The vast majority of these recoveries and freezes — approximately 80% — are related to hacks, exploits, and thefts happening externally. Meanwhile, the remaining 20% are associated with scams taking place outside the Binance platform.

Jimmy Su, Chief Security Officer at Binance, shared: "Binance has cultivated a crypto user-focused culture that defines every aspect of our operations. This achievement underscores our unwavering dedication to protecting not just our users, but also enhancing the overall security of the cryptocurrency ecosystem. Market growth and volatility, as observed in recent months, often bring an influx of new investors who may be more susceptible to scams and hacks, and elevated prices during these periods can result in larger monetary losses."

"At Binance, we take a proactive and hands-on approach to making the ecosystem more secure. By expanding our collaboration to include more third-party services, we have achieved greater coverage in tracking and recovering stolen funds. Our efforts and proven track record are a testament to our commitment to protecting our users and fostering a safer cryptocurrency environment. We are thankful to our teams and partners for their hard work and efforts on this front," continues Jimmy.

The increase in recovered and frozen funds this year is not indicative of a rise in criminal activity within the industry but rather a result of Binance's proactive security measures. The innate nature of the blockchain, where all transactions are public and trackable, makes it easier to track and recover funds. This public record allows for easier identification and monitoring of potentially suspicious activity.

"Blockchain technology offers us a powerful tool in gathering essential evidence and taking action against scammers, paving the way for a more secure and safer investment environment. While it's important to stay cautious and always do thorough research, rest assured that the unique properties of blockchain technology are working to our advantage in this fight against scams," shared Jimmy.

According to Chainalysis' 2024 Crypto Crime Report, 2023 saw a significant drop in the value received by illicit cryptocurrency addresses, totaling $24.2 billion, down from $39.6 billion in 2022. The share of all crypto transaction volume associated with illicit activity also fell to 0.34% from 0.42% in 2022. This reduction highlights the effectiveness of proactive security measures in the industry, and Binance is proud to be at the forefront of these efforts.

About Binance

Binance is a leading global blockchain ecosystem behind the world's largest cryptocurrency exchange by trading volume and registered users. Binance is trusted by more than 200 million people in 100+ countries for its industry-leading security, transparency, trading engine speed, protections for investors, and unmatched portfolio of digital asset products and offerings from trading and finance to education, research, social good, payments, institutional services, and Web3 features. Binance is devoted to building an inclusive crypto ecosystem to increase the freedom of money and financial access for people around the world with crypto as the fundamental means.

For more information, visit: https://www.binance.com

SOURCE Binance