Binance, the largest crypto exchange, announced that it has recovered or frozen more than $73 million in stolen user funds in 2024. This amount exceeds the $55 million recovered in 2023, a 33% increase.
A sharp increase in the recovery of stolen funds
According to Binance, its security team has been very active in recovering and freezing misplaced or ill-gotten funds on its network. The platform has also collaborated with other crypto industry players and authorities to ensure that harmed users are supported.
Nearly 80% of the $73 million recovered was from hacks, exploits, and thefts that occurred outside of the Binance platform. The remaining 20% came from externally-sourced scams.
According to Jimmy Su, Binance's head of security, the platform's central position was instrumental in these recoveries, thanks to its user-centric culture. He adds:
“High market volatility attracts many new investors who are more vulnerable to fraud and hacks. But Blockchain technology allows us to collect critical evidence and take action against scammers, paving the way for a safer and more secure investment environment.”
Crypto losses surge despite efforts
Despite the progress conducted by Binance, the overall trend remains worrying. During the first half of 2024, hackers intensified their attacks, causing losses of $1.56 billion. This is a 293% increase compared to the same period in 2023.
Decentralized Finance (DeFi) protocols were the top targets, accounting for 59% of stolen crypto assets. Flash loan attacks, exploiting unsecured borrowing, also accounted for 24% of incidents.
While Binance’s efforts to recover stolen funds are commendable, the significant spike in crypto-related losses underscores the persistence of security challenges in this booming sector. To restore investor confidence, market participants will need to step up efforts to strengthen security measures and combat cybercrime.
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