Binance Secures Over $73M in Funds Stolen from External Parties
Main Takeaways:
Binance's security team has recovered or frozen over $73 million in user funds stolen from external parties as of July 31, 2024, surpassing the $55 million secured throughout 2023.
Through proactive efforts and collaboration with industry players and the public sector, Binance has successfully helped users recover misplaced and lost digital funds, with approximately 80% of recoveries related to external hacks, exploits, and theft.
Binance's Chief Security Officer, Jimmy Su, emphasizes the company's dedication to protecting users and enhancing the overall security of the cryptocurrency ecosystem, leveraging blockchain technology to track and recover stolen funds effectively.
We are proud to share that our security team has recovered or frozen over $73 million in user funds from external hacks between January 1 and July 31 this year. This surpasses the approximately $55 million secured throughout the entire 2023.
Through proactive efforts to support Web3 users and collaborate with industry peers, we have been successful in helping users recover misplaced and lost digital assets, as well as freezing and clawing back ill-gotten funds that have made their way to the Binance platform. We also collaborate closely with the public sector to ensure that affected users get the help they need.
Protecting Newcomers
The vast majority of these recoveries and freezes — approximately 80% — are related to hacks, exploits, and thefts happening externally. The remaining 20% are associated with scams taking place outside the Binance platform.
Jimmy Su, Chief Security Officer at Binance, attributed the achievement to Binance’s user-focused culture that defines every aspect of its operations and the organization’s dedication to protecting not just Binance users but also enhancing the overall security of the cryptocurrency ecosystem. Jimmy added, “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.”
Binance takes a proactive and hands-on approach to collaborative security in Web3 space. As collaboration expands to include more third-party services, Binance is able to achieve greater coverage when tracking and recovering stolen funds, explains Jimmy.
Blockchain Against Crime
The increase in recovered and frozen funds this year does not necessarily indicate a rise in criminal activity within the industry; rather, this suggests an increase in the efficiency of Binance’s proactive security measures. The nature of public blockchains, where all transactions are visible and trackable, makes it easier to trace and recover funds. This public record also allows for easier identification and monitoring of suspicious activity.
“Blockchain technology offers us a powerful tool in gathering essential evidence and taking action against criminals, 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 financial crime,” added Jimmy Su.
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 we are proud to be at the forefront of these efforts.