Binance, the largest cryptocurrency exchange by trading volume, announced that it had prevented more than $2.4 billion in potential user losses due to scams and fraud in the first seven months of 2024, according to an August 20 statement shared with CryptoSlate.
Binance revealed that more than $1.1 billion, or about 45%, of the $2.4 billion in avoided losses involved withdrawals related to suspected crypto scams. The exchange reported that these efforts protected more than 1.2 million users on its platform.
Binance attributed its success to a sophisticated internal risk engine that operates 24/7, using a combination of AI-based and manual assessments for real-time monitoring.
Binance CTO Rohit Wad said:
“Avoiding more than $2.4 billion in potential losses in just seven months underlines our continued commitment over the years.”
He further highlighted Binance’s focus on user protection, which is backed by advanced technology tools and processes that protect users and their assets 24/7.
The announcement follows the platform’s recent efforts to recover or freeze $73 million in stolen user funds this year. Binance said that funds recovered so far this year are already up 33% compared to the $55 million recovered in 2023.
According to the company, 80% of the money recovered this year was stolen through hacks, exploits and thefts, while the remaining 20% was lost to scams.
Compliance efforts
Market analysts pointed out that Binance’s recent emphasis on recovering stolen cryptocurrencies is part of its broader strategy to demonstrate its compliance with global regulations. This comes in the wake of recent regulatory challenges in the United States and Nigeria.
When Richard Teng took on the role of CEO last year, he promised to implement robust anti-money laundering measures, enforce strict know-your-customer policies and ensure regulatory compliance. Since then, the fair has made significant efforts these areas, as evidenced by the recent registration in India after a gap of seven months.
In January, the company was banned from serving Indian users for not adhering to local laws. However, the exchange revealed that it has acquired the appropriate licenses this month and can better serve its Indian users.
