How Binance Prevented $2.4 Billion in Losses
On August 20, Binance, the world’s largest cryptocurrency exchange, released a piece of news that emphasized that they had preserved more than $2.4 billion since the year began up to July via exposure to soured cryptocurrency deals and fraud activities. This achievement was further insured by the protection of the digital assets of over 1.2 million users around the world from common complications such as market manipulation and falling prey to online scams.
Binance states that the product is based on analysis of utilizing the smart risk management of real-time monitoring and early warning. It is the exchange that devised the idea of perfecting the structure of its system to alert and stop users from (inadvertently) executing fraudulent action on the platform. The tools are able to detect and drop unauthorized transactions.
From January to July 2024, Binance was able to uncover illicit activities using AI-powered algorithms and spot obscuring of identities by analyzing data and detection by humans. The built-in system which on a regular basis screens all the transactions on the platform making the users’ assets safety guaranteed.
Of the $2.4 billion loss, over $1.1 billion was due to bad actors’ withdrawal attempts. It was an attempt to pull money out of Binance’s secure environment by the criminals. However, the defense’s alert and the security team’s action blocked them from their mission.
“Our focus has always been on our users and is why we built up industry-unique technological features and procedures which not only enable us to protect our customers and their digital assets but meet round-the-clock (Robinson) as well,” the CFO of Binance, Rohit Wad, was quoted as having said. He emphasized the need to keep the system updated so that the new challenges that come with the evolving financial system can be handled.
A Multi-Layered Approach to Security
The security feature developed by Binance touches different aspects and is made to limit the risk both on the user side as well in the ecosystem. This strategy is implemented in various functions of the service such as peer-to-peer trading, payments, and withdrawal from the network.
On the other hand, Binance has brought change through the provision of tools designed to fortify user protection, such as custom pop-up notifications, a cooldown feature, and even wake-up calls to the users as a means of alerting them of any possible dangers. Also, these allow users to send complaints regarding transactions that are marked as suspicious. The Binance Crypto Exchange has a scoring and ranking system that is used when a user receives an alert regarding a transaction and does not understand it. This allows cases to be quickly escalated to the priority line if necessary and the transactions reviewed for possible fraudulent activities. Binance also provides other options for users to flag and correct issues if their transactions are designated as suspicious.
As of July 31, 2024, Binance has also retrieved over $73 million, misused or lost assets, save them for others. Mostly, there is a significant part of recovered and freezing assets that were acquired through illegal activities such as money laundering and getting into the exchange. This is due to the exchange of Binance retrieving and freezing funds through cooperation with other similar exchanges and government entities to help users defrauded by scams. Most importantly, the involvement of Binance in funds being frozen and retrieved has demonstrated about 80% of these practices been done through stealing, hacking, and exploiting other platforms however none of them will be reported to the Binance platform. Therefore, Binance strictly recommends that customers should be bordering on the edge of using their resources but still remain cautious enough to check in order to have the correct data. CTO Rohit Wad gave the piece of advice to stay as careful as they can because although there are many safe guards from Binance, the user themselves are the most important factors in protecting the assets.
““Stay informed, use strong security practices, and be cautious of potential scams,” Wad urged.”
Binance topped the ongoing landscape of cryptocurrency trading, with Chinese-speaking users in the majority, extending its 60% of market dominance in key categories with others. According to the report, 96% of respondents rated Binance as the first-dealing platform for cryptocurrencies; thus, they are the most popular exchange in the global crypto market.
