Binance reports that during the first seven months of 2024, the company recovered or froze more than $73 million in user funds from external hacks. The amount significantly exceeds the $55 million that it secured throughout 2023.
According to a post on the Binance Blog, about 80% of the recoveries made between January 1 and July 31 of this year are associated with external hacks, exploits, and thefts. The other 20% are related to off-platform scams.
"Through proactive efforts to support Web3 users and collaborate with industry peers, we have been successful in helping users recover misplaced and lost digital assets, as well as freezing and clawing back ill-gotten funds that have made their way to the Binance platform," the blog post stated. "We also collaborate closely with the public sector to ensure that affected users get the help they need."
Binance Chief Security Officer Jimmy Su said in the blog post that user safety and continually enhancing the overall security of the cryptocurrency ecosystem are part of the company’s culture. "Market growth and volatility, as observed in recent months, often bring an influx of new investors who may be more susceptible to scams and hacks, and elevated prices during these periods can result in larger monetary losses," Su stated in the blog post.
The value received by illicit cryptocurrency addresses plummeted in 2023, according to the blog post, citing Chainalysis’ 2024 Crypto Crime Report. It totaled $24.2 billion, a $39.6 billion decrease from 2022. The share of all crypto transaction volume associated with illicit activity also dropped to 0.34% from 0.42% in 2022. Binance said the decline attests to the effectiveness of the industry’s security efforts.
"Blockchain technology offers us a powerful tool in gathering essential evidence and taking action against criminals, paving the way for a more secure and safer investment environment," Su said in the blog post.