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In the second part of our Risk Management series, we'll look at how our Investigations team works with law enforcement to combat criminal activity.
From intensifying platform security to catching criminals, we'll share how our different teams help improve security across the crypto industry.
Did you know that Binance has an Investigations team dedicated to protecting users by cooperating closely with authorities? The crypto landscape continues to evolve rapidly, and along with its significant growth comes the inevitable presence of bad actors.
As a global leader in providing digital asset infrastructure, Binance places greater emphasis on the security of its users. Our Investigations team is at the forefront of these crime-fighting efforts and we are proud to explain to you the important work they do.
Meet the Binance Investigations team
“Our mission is to maintain the highest level of security for our users and the broader crypto community.” – Jarek Jakubcek, Law Enforcement Training Lead at Binance
Members of the Binance Investigations team are spread across 18 countries and work hard to keep our users safe, “75% of the team are former law enforcement officers, the rest are experienced crypto professionals,” shared Jarek Jakubcek, a seasoned law enforcement professional and a veteran when it comes to cryptocurrencies. “Our team spends every waking moment investigating and preventing cryptocurrency-related crimes.”
With an average of four to five years of experience in blockchain investigations, each team member is accustomed to dealing with a range of crimes involving or facilitated by cryptocurrencies. Together, they serve as one of the industry's leading investigative teams, solving international cryptocurrency crime cases.
What is the role of the Binance Investigations team?
“Our main job is to make life difficult for criminals, so that they don’t get away with stealing and using cryptocurrencies.” – Jarek Jakubcek, Law Enforcement Training Lead at Binance
Investment fraud, ransomware, money laundering, phishing scams and hacks, these are some of the crimes that the Investigations team deals with regularly. To stay ahead of these constant threats, the team leverages its expertise to actively protect cryptocurrency users, both internally and externally.
They apply three main strategies: assisting with law enforcement requests, sharing knowledge, and providing education on cryptocurrency security.
Response to investigation requests
The Binance Investigations team receives requests from law enforcement agencies around the world. To date, our dedicated unit has fulfilled more than 55,000 such orders.
For example, Binance collaborated with US authorities to freeze more than $4 million in funds connected to North Korean cybercrime organizations.
Share knowledge
The blockchain world is a rapidly growing ecosystem full of developers working hard to create new networks and applications. Inevitably, this attracts opportunistic criminals tempted to exploit any gaps in the developing sector to steal funds. To strengthen our shared defenses, we maintain a community of partners who actively share knowledge and information across the network.
The Binance Investigations team collaborates with blockchain analytics firms such as Chainalysis, Elliptic, and TRM Labs to monitor risks in the crypto sector. By utilizing advanced tools and machine learning algorithms from blockchain forensic experts, we can gain valuable insights into the operations of bad actors. This allows for the identification, tracking and interception of suspicious and irregular transactions when necessary.
Upon receiving information, the Investigations team evaluates available internal and external data and, in some cases, proactively reports the incident to the responsible authorities. To strengthen Binance's defenses, the team may recommend guidelines for other internal teams. If a vulnerability related to stolen credit cards for money laundering operations is identified, they may suggest strengthening Binance's PLD (Money Laundering Prevention) protocol. In cases where criminals use fake accounts, the team may recommend evaluating and improving platform security, including KYC procedures.
Training for Law Enforcement Authorities
As criminals develop new approaches to avoid being identified, traditional investigative methods are not always sufficient. Providing blockchain knowledge to law enforcement authorities can lead to more efficient crime solving. For example, physical evidence such as paper records and hardware wallets can be identified and recovered from crime scenes by agents who are aware of how cryptocurrencies are stored.
Without a doubt, the power that knowledge about cryptocurrencies provides is beneficial. Educating law enforcement authorities is part of Binance's effort to contribute to the fight against cybercrime and the misuse of digital assets.
In September, Binance launched the Global Law Enforcement Training Program, which is designed to help law enforcement detect financial and cybercrime and help prosecute criminals exploiting digital assets. We take our commitment seriously and have held over 70 in-person and online trainings and workshops for LEAs (Law Enforcement Agencies) in over 20 countries so far this year.
In February, Binance signed a Memorandum on Cybersecurity Education for Responsible Authorities in Kazakhstan. With this agreement, we will develop educational programs for the Law Enforcement Academy under the General Prosecutor's Office of the Republic of Kazakhstan, a regional hub for combating criminal threats in the Central Asian region.
Joining forces to fight crime
“90% of our work is collaboration.” – Jarek Jakubcek, Law Enforcement Training Lead at Binance
Cybercrime and fraud know no borders. By creating the Binance Investigations team, we can enhance crime-fighting capabilities across jurisdictions and ensure a coordinated global response to the threats posed by digital asset crimes.
With cases ranging from cryptocurrency hacks to more “traditional” crimes where cryptocurrencies were involved, our collective efforts have helped protect not only crypto users, but also the victims of these crimes.
The Investigations team works closely with law enforcement agencies on important cases involving terrorist financing and drug-related crimes. Last year, Binance and the United States Drug Enforcement Administration (DEA) seized more than $1.5 million in cryptocurrencies generated by drug trafficking.
We also team up with Law Enforcement Agencies (LEAs) to provide tips and best practices on how to effectively combat and prevent cryptocurrency-related crimes for crypto users. For example, earlier this year we ran a global anti-fraud campaign in Hong Kong in collaboration with the local police force. Following successful execution, we are now discussing similar activities with LEAs in other countries.
“If you ask most law enforcement agencies about their experience with Binance, they will be positive because, frankly, Binance devotes a lot of resources and attention to identifying criminal users on the platform,” Jarek said.
When asked why Binance helps with external investigation requests and training for law enforcement authorities, Jarek responded: “We are the industry leader, it is our duty.”
Collaboration also improves response times, provides greater transparency, and an overall stronger defense against criminal activity. When there is a united front against criminals, everyone in the blockchain ecosystem is better off.
A safer place for us all
“We will continue to lend our expertise when needed.” – Jarek Jakubcek, Law Enforcement Training Lead at Binance
Binance recognizes its immense responsibility in protecting the crypto ecosystem and its users. Maintaining a dedicated investigations task force, filled with advanced technological knowledge and law enforcement experience, is an important component of our effort to ensure the Web3 industry is safe for everyone.
From assisting law enforcement to alerting service providers and strengthening internal security controls, every step helps build a safer digital future for us all. Stay tuned for the next installment of our series to find out how Binance manages risk.
Further reading
Risk Management: An In-Depth Look at Binance Platform Security
Stay Safe: Detecting Account Takeover Attacks
Discover the Scams: a definitive guide to the most common cryptocurrency scams