Binance Exchange, the world’s leading cryptocurrency trading platform, has announced that it successfully prevented over $2.4 billion in potential losses between January and July 2024. According to a blog post, Binance reported that over 1.2 million users were protected from scams and malicious schemes.
Binance Exchange Employs Several Measures to Combat Scams
Notably, this highlights Binance’s commitment to ensuring the security of its platform in the rapidly evolving crypto space. Meanwhile, a significant portion of the $2.4 billion in prevented losses comes from blocking withdrawals linked to suspected crypto scams. According to Binance, over $1.1 billion, or approximately 45% of the total, was directly tied to scam-related withdrawal attempts.
Binance has a smart system to detect and prevent fraudulent activities. This system uses AI-based monitoring and the Binance security team’s manual checks. It works in real-time, helping the platform identify suspicious transactions and take action quickly to protect users. By utilizing AI technology and human expertise, Binance can accurately and rapidly respond to threats on its platform. Furthermore, the exchange uses a 24/7 monitoring system.
Binance’s Record-Breaking Recovery Efforts
According to reports by TheCoinRise, Binance Exchange has used blockchain to track and recover stolen funds. Some days ago, its security experts recovered over $73 million stolen funds by external parties between January 1 and July 31, 2024. This accomplishment far exceeds the $55 million recovered by the exchange in 2023.
The exchange emphasized that the feat became possible due to collaboration with industry peers to support Web 3.0 users. It maintained that these recoveries were on misplaced or lost digital assets and illegal funds that found their way to the Binance platform.
Meanwhile, an analysis of the funds that Binance clawed back showed that 80% were assets lost due to hacking, theft, or other external exploits. The other 20% is related to scams perpetrated outside the Binance exchange.
Binance Exposed $6.2M Crypto Scam
A few months ago, Binance’s Financial Crimes Compliance (FCC) Department teamed up with Taiwan’s Ministry of Justice Investigation Bureau and the Taipei District Prosecutors Office to address a money laundering case. With the aid of Binance Exchange, Lo Wei-yuan, a prosecutor in Taiwan, meticulously uncovered and assembled the evidence of the suspicions surrounding nine individuals.
As a result, the culprits were indicted and faced charges for multiple financial offenses, including money laundering, fraud, and organized crimes. These agencies successfully resolved a digital asset fraud case worth 200 million New Taiwan dollars ($6.2 million). Meanwhile, this development comes a day after the exchange’s security team developed a strong antidote to protect investors from the risk of address poisoning scams.
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