- Binance recovered over $73 million in user funds in 2024, surpassing 2023’s total.
- Most recoveries stem from external hacks, showcasing Binance’s proactive security efforts.
Binance revealed the successful recovery and freezing of approximately $73 million in customer assets from external hacks between January 1 and July 31, 2024. This represents a huge increase over the $55 million collected throughout 2023. Binance’s proactive actions and coordination with industry participants and the state sector have assisted users in recovering lost and stolen digital assets. Approximately 80% of these recoveries were due to external hacks, exploits, and thefts, with the remaining 20% due to scams performed outside of the Binance platform.
Binance’s Commitment to User Protection
Jimmy Su, Binance’s Chief Security Officer, stressed the platform’s commitment to protecting its users and improving overall security in the cryptocurrency ecosystem. He observed that an increase in market volatility frequently attracts new investors who are more vulnerable to frauds, resulting in larger monetary losses during these occasions.
Binance’s security strategy involves increasing relationships with third-party businesses to provide broader coverage for tracing and retrieving stolen assets. Blockchain technology’s transparency has also shown to be an effective tool for identifying and prosecuting fraudsters, paving the path for a safer investment environment.
He also addressed that this year’s increase in recovered funds indicates the effectiveness of Binance’s security measures rather than an increase in criminal activities. Binance’s continued leadership in crypto security benefits the industry as a whole, as proven by recent reports of falling crypto-related crimes.
According to Chainalysis’ 2024 Crypto Crime Report, the value received by illicit cryptocurrency addresses fell to $24.2 billion in 2023, down from $39.6 billion in 2022. The proportion of crypto transaction volume related to illegal activities has also fallen to 0.34%, reflecting the efficiency of industry-wide security measures.
