In a recent announcement, Binance, the leading cryptocurrency exchange in terms of trading volume, revealed that it successfully prevented over $2.4 billion in potential user losses from scams and frauds in the first seven months of 2024. The exchange reported that a significant portion of these averted losses, approximately $1.1 billion, were related to withdrawals associated with suspected crypto scams. This proactive approach by Binance protected more than 1.2 million users on its platform.
Binance credited its success in preventing these potential losses to its sophisticated internal risk engine, which operates round the clock. This risk engine utilizes a combination of AI-based algorithms and manual reviews for real-time monitoring of transactions. According to Binance CTO Rohit Wad, the prevention of over $2.4 billion in losses within just seven months underscores the exchange’s unwavering commitment to user protection. He highlighted the advanced technological tools and processes that Binance employs to safeguard users and their assets 24/7.
In addition to preventing potential losses, Binance has also focused on recovering or freezing stolen user funds. The exchange announced that it managed to recover $73 million in stolen funds this year, marking a 33% increase compared to the funds recovered in 2023. Notably, 80% of the recovered funds were stolen through hacks, exploits, and thefts, while the remaining 20% were lost to scams. This emphasis on retrieving stolen crypto assets is part of Binance’s broader strategy to showcase its compliance with global regulations, especially in light of recent regulatory challenges in countries like the United States and Nigeria.
After Richard Teng took on the CEO role last year, Binance pledged to implement robust anti-money laundering measures, enforce strict know-your-customer policies, and ensure regulatory compliance. The exchange has since made considerable strides in these areas, demonstrated by its recent registration in India following a seven-month hiatus. Earlier this year, Binance was prohibited from catering to Indian users due to non-compliance with local laws. However, the exchange announced that it has obtained the necessary licensing this month, allowing it to resume services for Indian users in accordance with the regulatory framework.