Managing Risks: Catching Crypto Criminals With Binance's Investigations Team
Main Takeaways
In the second installment of our Managing Risk series, we look at how our Investigations team works with law enforcement to tackle criminal activity.
From strengthening platform security to catching criminals, we’ll share how our different teams help improve security within the entire crypto industry.
Learn how Binance’s Investigations unit manages risks and works with law enforcement to protect users and the entire crypto space from criminals.
Did you know that Binance has an Investigations team dedicated to protecting users by cooperating closely with law enforcement? The cryptocurrency landscape continues to evolve rapidly, and along with its significant growth comes the inevitable presence of bad actors.
As the leading global digital asset infrastructure provider, Binance places utmost emphasis on the safety and security of its users. Our Investigations team stands at the forefront of these crime-busting efforts, and we’re proud to explain to you the important work they do.
Meet Binance’s Investigations Team
“Our mission is to maintain the highest level of security for our users and the broader cryptocurrency community.” – Jarek Jakubcek, head of Law Enforcement Training at Binance
Binance Investigations team members are spread across 18 countries and work diligently to keep our users safe. “75% of us are former law enforcement, the rest are veterans from the crypto sector,” shared Jarek Jakubcek, a seasoned law enforcement professional and a cryptocurrency veteran himself. “Our team spends every waking moment investigating and deterring crypto-related crimes.”
With an average of four to five years of experience in blockchain investigations, every member of the team is used to dealing with a range of crimes revolving around or facilitated by crypto. Together, they serve as one of the industry’s leading investigations teams cracking international crypto criminal cases.
What Does The Binance Investigations Team Do?
“Our main job is making it difficult for bad actors to get away with stealing and using crypto.” – Jarek Jakubcek, head of Law Enforcement Training at Binance
Investment fraud, ransomware, money laundering, phishing scams, and hacks. These are some of the crimes that the Investigations team handles regularly. To stay ahead of these ever-present threats, the team leverages its expertise to proactively protect crypto users, both internally and externally.
They employ three main strategies: assisting with law enforcement requests, sharing intelligence, and delivering education on cryptocurrency security.
Responding to investigation requests
The Binance Investigations team receives requests from law enforcement agencies all over the world. To date, our dedicated unit has handled more than 55,000 such inquiries.
For instance, Binance collaborated with US authorities to freeze more than $4 million dollars worth of funds connected to North Korean cybercrime organizations.
Sharing intelligence
The blockchain world is a fast-growing ecosystem full of hardworking builders creating new networks and applications. Unfortunately, this inevitably attracts opportunistic criminals tempted to exploit any gaps in the developing space and steal away funds. To fortify our shared defenses, we maintain a community of peers that actively share intelligence and information throughout the network.
The Binance Investigations team collaborates with blockchain analytics firms like Chainalysis, Elliptic, and TRMLabs to monitor risks in the crypto industry. By utilizing advanced tools and machine learning algorithms from blockchain forensics experts, we can gain valuable insights into malicious actors' operations. This allows for the detection, tracking, and interception of suspicious transactions and anomalies when needed.
Upon receiving intel, the Investigations team assesses the available internal and external data and, in some cases will proactively report the incident to law enforcement authorities. The team can recommend courses of action to other internal teams to bolster Binance’s defenses. If a vulnerability concerning stolen credit cards for money laundering operations is identified, they might suggest tightening Binance's AML protocol. In cases where bad actors use fake accounts, the team may recommend evaluating and enhancing platform security, including KYC procedures.
Training law enforcement
As criminals develop new approaches to evade detection, traditional investigative methods may not always be sufficient. Providing law enforcement with blockchain knowledge could lead to more efficient crime-solving. For instance, physical evidence like paper records and hardware wallets can be identified and retrieved from crime scenes by officers who are aware of how crypto is stored.
The power that crypto knowledge provides is undoubtedly beneficial. Educating law enforcement then is part of Binance’s wide-reaching effort to contribute to the fight against cybercrime and misuse of digital assets.
Last September, Binance launched the Global Law Enforcement Training Program designed to help law enforcement detect financial and cyber crimes and assist in the prosecution of bad actors who exploit digital assets. We took our commitment seriously and have delivered over 70 on-site and online trainings and workshops for LEAs in over 20 countries so far this year.
This February, Binance signed a Memorandum of Education in Cybersecurity for Law Enforcement Officers in Kazakhstan. Under this agreement, we will develop educational programs for the Law Enforcement Academy under the Prosecutor General's Office of the Republic of Kazakhstan, a regional hub for countering criminal threats in the Central Asian region.
Joining Forces to Fight Crime
“90% of our work is collaborative.” – Jarek Jakubcek, head of Law Enforcement Training at Binance
Cybercrime and fraud know no boundaries. With the establishment of Binance’s Investigations team, we can enhance crime-fighting capabilities across jurisdictions and ensure a coordinated global response to threats posed by digital asset-related crime.
With cases ranging from crypto hacks to more “traditional” crimes in which cryptocurrency was involved, our collective efforts helped protect not only crypto users but also victims of those crimes.
Specifically, the Investigations team works closely with law enforcement on major cases involving terrorism financing and drug-related crimes. Last year, Binance and the US Drug Enforcement Agency seized more than $1.5 million in cryptocurrencies generated from drug trafficking.
We also team up with law enforcement agencies (LEAs) to effectively deliver tips and best practices for fighting and preventing cryptocurrency crime to cryptocurrency users. For one, earlier this year, we piloted a global anti-scam campaign in Hong Kong in collaboration with the Hong Kong Police Force. Following successful execution, we are now discussing similar activities with LEAs in other countries.
“If you ask the majority of law enforcement agencies about their experience with Binance, they will be positive, because, quite frankly, Binance dedicates a lot of resources and attention to detecting criminal users on the platform,” said Jarek.
When asked why Binance helps with external investigation requests and training law enforcement, Jarek replied, “We’re the leaders in the industry, it’s our duty.”
Collaboration also leads to quicker response times, increased transparency, and an overall more robust defense against criminal activity. When there is a united front against bad actors, everyone in the blockchain ecosystem is better off.
A Safer Place For All
“We’ll continue to lend our expertise where necessary.” – Jarek Jakubcek, head of Law Enforcement Training at Binance
Binance recognizes its immense responsibility to safeguard the crypto ecosystem and its users. Maintaining a dedicated investigations task force, complete with advanced technological expertise and law enforcement experience, is a major component of our push to make sure that the Web3 space is safe for everyone.
From assisting law enforcement to alerting service providers and strengthening internal security controls, every step helps to build a safer digital future for us all. Stay tuned to find out how else Binance manages risks in the next installment of our series.