Binance, the leading cryptocurrency exchange in terms of trading volume, recently announced that it successfully prevented over $2.4 billion in potential user losses from scams and fraud in the first seven months of 2024. A significant portion of these averted losses, over $1.1 billion, were related to withdrawals associated with suspected crypto scams. Thanks to a sophisticated internal risk engine that operates around the clock, utilizing a combination of artificial intelligence-based technology and manual reviews for real-time monitoring, Binance was able to protect more than 1.2 million users on its platform.
The Chief Technology Officer of Binance, Rohit Wad, highlighted the platform’s unwavering commitment to preventing financial losses, stating that the prevention of over $2.4 billion in potential losses within just seven months underscores their dedication over the years. Binance’s focus on user protection is reinforced by advanced technological tools and robust processes that work tirelessly to safeguard users and their assets 24/7. In addition to preventing losses from scams and fraud, Binance has also been actively involved in recovering or freezing stolen user funds this year, totaling $73 million so far.
The funds recovered by Binance in 2024 have already surpassed the amount recovered in the previous year by 33%, with 80% of the funds being stolen through hacks, exploits, and thefts, and the remaining 20% lost to scams. Market analysts have noted that Binance’s increased focus on retrieving stolen cryptocurrency is part of its broader strategy to demonstrate compliance with global regulations, particularly in response to recent regulatory challenges in the United States and Nigeria. Following Richard Teng’s appointment as CEO last year, the exchange has made significant strides in implementing anti-money laundering measures, enforcing strict know-your-customer policies, and ensuring regulatory compliance.
Binance’s recent registration in India after a seven-month hiatus demonstrates its commitment to regulatory compliance and user protection. Earlier this year, the exchange was prohibited from serving Indian users due to non-compliance with local laws. However, Binance recently obtained the necessary licensing and is now able to resume operations in India, better serving its Indian user base. This move aligns with Binance’s broader mission to establish a secure and compliant trading environment for its global user base.