Binance’s security team has successfully recovered over $73 million in user funds from external hacks as of July 31 this year, surpassing the approximately $55 million recovered throughout 2023. This achievement highlights the company’s ongoing commitment to user protection and overall cryptocurrency ecosystem security.
Jimmy Su, Chief Security Officer at Binance, emphasized the significance of this milestone. “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,” Su stated.
Su noted that market growth and volatility, often accompanied by an influx of new investors, can increase susceptibility to scams and hacks. Elevated market prices during these periods can also result in larger monetary losses for investors.
Binance has been effective in helping users recover misplaced and lost digital funds, as well as in freezing and reclaiming ill-gotten assets that make their way to the Binance platform. The company collaborates closely with public sector agencies to ensure affected users receive necessary assistance.
Approximately 80% of the recoveries and freezes are related to hacks, exploits, and thefts occurring outside the Binance platform, while the remaining 20% are linked to scams outside of Binance’s direct control.
“At Binance, we take a proactive and hands-on approach to enhancing the security of the ecosystem. By expanding our collaboration with third-party services, we have achieved greater success in tracking and recovering stolen funds,” Su said. He praised the efforts of Binance’s teams and partners for their work in improving security.
The increase in recovered and frozen funds this year reflects Binance’s proactive security measures rather than a rise in criminal activity within the industry. Su highlighted that the transparency of blockchain technology, which allows all transactions to be publicly recorded and trackable, aids in the identification and monitoring of suspicious activity.
According to Chainalysis’ 2024 Crypto Crime Report, the value received by illicit cryptocurrency addresses dropped significantly in 2023, totaling $24.2 billion compared to $39.6 billion in 2022. The share of all crypto transaction volume associated with illicit activity also fell to 0.34%, down from 0.42% in the previous year.
“Blockchain technology offers a powerful tool for gathering essential evidence and taking action against scammers, contributing to a more secure investment environment. While it is crucial to remain cautious and conduct thorough research, the unique properties of blockchain technology are working to our advantage in combating scams,” Su concluded.
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