Binance, the world’s largest cryptocurrency exchange in terms of trading volume, recently announced a significant milestone in its efforts to protect users from scams and fraud. According to a statement shared with CryptoSlate on August 20, the platform has successfully prevented over $2.4 billion in potential user losses in the first seven months of 2024.
Out of the total amount averted, approximately $1.1 billion, or 45%, was related to withdrawals associated with suspected crypto scams. This proactive approach by Binance has safeguarded more than 1.2 million users on the platform from falling victim to fraudulent activities.
The success in preventing these losses can be attributed to Binance’s advanced internal risk engine, which operates round-the-clock. This system utilizes a combination of artificial intelligence (AI) technology and manual reviews to monitor transactions in real-time, ensuring enhanced security for users.
Rohit Wad, the Chief Technology Officer (CTO) of Binance, expressed pride in the platform’s achievements, stating, “Preventing over $2.4 billion in potential losses in just seven months highlights our relentless commitment over the years.” This dedication to user protection is reinforced by the deployment of sophisticated technological tools and processes that operate 24/7 to safeguard users and their assets.
In addition to preventing potential losses, Binance has also focused on recovering stolen user funds. The platform has successfully recovered or frozen $73 million in stolen funds this year, marking a 33% increase from the previous year. The majority of the recovered funds were stolen through hacks, exploits, and thefts, with the remaining portion lost to scams.
Market analysts have noted that Binance’s recent efforts to retrieve stolen cryptocurrencies align with its broader strategy to demonstrate compliance with global regulations. Following regulatory challenges in the United States and Nigeria, the platform’s CEO, Richard Teng, has prioritized implementing robust anti-money laundering measures, enforcing strict know-your-customer policies, and ensuring regulatory compliance.
Binance’s compliance efforts have been evident in its recent registration in India after a seven-month hiatus. In January, the platform was prohibited from serving Indian users due to non-compliance with local laws. However, Binance has now obtained the necessary licensing to resume operations in India, enhancing its ability to cater to Indian users while adhering to regulatory requirements.
Overall, Binance’s proactive measures to prevent user losses, recover stolen funds, and demonstrate regulatory compliance underscore its commitment to providing a secure and compliant trading environment for cryptocurrency enthusiasts worldwide.