Binance has recently announced a significant achievement in enhancing the security of the cryptocurrency environment.
As of July 31 this year, Binance’s security team has successfully recovered or frozen over $73m in funds from external hacks, exceeding the total for 2023, which was around $55m.
This notable improvement in securing assets illustrates Binance’s commitment to not only protecting their users but also fortifying the broader cryptocurrency market against fraudulent activities.
Approximately 80% of the recovered or frozen assets were related to external hacks, exploits, and thefts, while the remaining 20% stemmed from scams external to the Binance platform.
The company’s Chief Security Officer, Jimmy Su, emphasized Binance’s user-focused approach which permeates all operations, saying, “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.”
Jimmy highlighted the proactive and collaborative efforts made by Binance to extend their security measures. This expansion includes greater integration with third-party services which has significantly improved their ability to track down and secure stolen assets. “By expanding our collaboration to include more third-party services, we have achieved greater coverage in tracking and recovering stolen funds. Our efforts and proven track record are a testament to our commitment to protecting our users and fostering a safer cryptocurrency environment,” he said.
The company also pointed out that the increase in fund recoveries this year is attributed to proactive security measures rather than an increase in criminal activity. The transparent nature of blockchain technology facilitates the tracking and recovery process, providing a robust tool against the proliferation of crypto scams.
The Chainalysis’ 2024 Crypto Crime Report further supports this positive trend, revealing a significant reduction in the value received by illicit cryptocurrency addresses from $39.6bn in 2022 to $24.2bn in 2023. The share of all crypto transactions associated with illicit activities also decreased to 0.34% from 0.42% in 2022, underscoring the effectiveness of the security measures implemented across the industry.
Jimmy concluded, “Blockchain technology offers us a powerful tool in gathering essential evidence and taking action against scammers, paving the way for a more secure and safer investment environment. While it’s important to stay cautious and always do thorough research, rest assured that the unique properties of blockchain technology are working to our advantage in this fight against scams.”
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