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Binance’s security team has recovered or frozen over $73 million in stolen user funds as of July 31, 2024, surpassing the $55 million recovered throughout 2023.
Through proactive efforts and collaboration with crypto and public sector players, Binance has helped users recover misplaced and lost digital funds, with approximately 80% of recoveries related to external hacks, exploits, and thefts.
Binance Chief Security Officer Jimmy Su emphasizes the company’s dedication to protecting users and increasing the overall security of the cryptocurrency ecosystem by leveraging blockchain technology to effectively track and recover stolen funds.
We’re proud to share that our security team recovered or froze over $73 million in user funds from external hacks between January 1 and July 31 of this year. This is more than the $55 million recovered in all of 2023.
Through proactive efforts to support Web3 users and collaborate with industry peers, we have been successful in helping users recover lost and misplaced digital assets, as well as freezing and recovering illicit funds that have made their way onto the Binance platform. We also collaborate closely with the public sector to ensure that affected users get the help they need.
Protecting newcomers
The vast majority of these recalls and freezes — approximately 80% — are related to hacks, exploits, and thefts that occur externally. The remaining 20% are associated with scams that occur outside of the Binance platform.
Jimmy Su, Binance’s Chief Security Officer, attributed the achievement to Binance’s user-centric culture that defines every aspect of its operations and the organization’s dedication to protecting not only Binance users but also increasing the overall security of the cryptocurrency ecosystem. Jimmy added, “Market growth and volatility, as seen in recent months, often brings an influx of new investors who may be more susceptible to scams and hacks, and high prices during these times can result in greater monetary losses.”
Binance takes a proactive and hands-on approach to collaborative security in the Web3 space. As the collaboration expands to include more third-party services, Binance is able to gain greater coverage when tracking and recovering stolen funds, Jimmy explains.
Blockchain contra o crime
The increase in recovered and frozen funds this year does not necessarily indicate an increase in criminal activity in the sector; rather, it suggests an increase in the efficiency of Binance’s proactive security measures. The public nature of blockchains, where all transactions are visible and traceable, makes it easier to track and recover funds. This public ledger also allows for easier identification and monitoring of potentially suspicious activity.
Blockchain technology provides us with a powerful tool to gather essential evidence and take action against criminals, paving the way for a safer and more secure investment environment. While it is important to be cautious and always do thorough research, rest assured that the unique properties of blockchain technology are working to our advantage in this fight against financial crime,” added Jimmy Su.
According to Chainalysis’ 2024 Crypto Crime Report, 2023 saw a significant drop in the amount received by illicit cryptocurrency addresses, totaling $24.2 billion, down from $39.6 billion in 2022. The share of all crypto transaction volume associated with illicit activity also fell from 0.42% in 2022 to 0.34%. This reduction highlights the effectiveness of proactive security measures in the industry, and we are proud to be at the forefront of these efforts.