Binance recovered mishandled user funds after a U.S. federal judge approved its guilty plea and $4.3 billion settlement.
Binance has successfully recovered $4.4 billion worth of digital assets for users who made deposit errors over the past two years.
Funds can be mishandled for a variety of reasons, including entering the wrong wallet address, depositing incompatible tokens, blockchain update issues, etc.
Deposit error recovered
In 2022 and 2023, Binance resolved 381,616 cases in which users deposited crypto assets that were not credited to their accounts. Binance said this week:
“To promote momentum in an industry still in its early stages, industry leaders like Binance should use their influence and resources to support other players in the emerging market, protect users, and maintain the integrity of the space.”
Jimmy Su, Binance’s chief security officer, has said that mishandling of funds is likely to continue, especially as newcomers enter the market.
The executive added:
“This is part of the maturation process of the industry. Most newcomers face a lot of challenges in operating their wallets securely.”
Binance’s latest move is of considerable significance at this point, especially in light of recent developments. U.S. District Judge Richard Jones of the Western District of Washington approved the company’s $4.3 billion fine in a plea agreement with the U.S. Department of Justice (DOJ).
The settlement, announced by the U.S. Department of Justice in November, accused Binance of violating sanctions and anti-money laundering regulations over the years. Under the settlement, Binance will pay a $4.3 billion fine, hire an independent compliance monitor, and have then-CEO and founder CZ resign.
CZ pleaded guilty to money laundering and was released on $175 million bail. As part of the agreement, he paid a $50 million fine, and since then CZ has remained in the United States, unable to return to his residence in Dubai.
Nigeria's crisis
While facing major regulatory hurdles in some jurisdictions, Binance has run into trouble in Nigeria, where authorities have detained at least two of its employees in a market manipulation investigation. The Office of the National Security Advisor (ONSA) confirmed the news.
Meanwhile, Binance removed the Nigerian currency, the naira, from its peer-to-peer (P2P) service. The move comes a week after presidential adviser Bayo Onanuga claimed that the crypto exchange manipulated Nigeria’s fiat currency and fueled its depreciation on the foreign exchange market. The allegations surfaced amid rumors that the government was considering a ban.
