Binance’s security team has recovered over $73 million in user funds from external hacks as of July 31 this year, surpassing an approximately $55 million secured throughout 2023.
“Binance has cultivated a crypto user-focused culture that defines every aspect of our operations. This achievement underscores our unwavering dedication to protecting not just our users, but also enhancing the overall security of the cryptocurrency ecosystem,” Jimmy Su, Chief Security Officer at Binance, said.
“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,” he added.
Binance said it has been successful in helping users recover misplaced and lost digital funds, as well as freezing and clawing back ill-gotten funds should they make their way to the Binance platform.
Binance also collaborates closely with the public sector to ensure that affected users get the help they need.
The vast majority of these recoveries and freezes — approximately 80% — are related to hacks, exploits, and thefts happening externally.
Meanwhile, the remaining 20% are associated with scams taking place outside the Binance platform.
“At Binance, we take a proactive and hands-on approach to making the ecosystem more secure. By expanding our collaboration to include more third-party services, we have achieved greater coverage in tracking and recovering stolen funds,” Su said.
Our efforts and proven track record are a testament to our commitment to protecting our users and fostering a safer cryptocurrency environment. We are thankful to our teams and partners for their hard work and efforts on this front,” he added.
The increase in recovered and frozen funds this year is not indicative of a rise in criminal activity within the industry but rather a result of Binance’s proactive security measures, he said.
The innate nature of the blockchain, where all transactions are public and trackable, makes it easier to track and recover funds. This public record allows for easier identification and monitoring of potentially suspicious activity, Su said.
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.
“Blockchain technology offers us a powerful tool in gathering essential evidence and taking action against scammers, 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 scams,” Su concluded.