Binance reportedly avoided $2.4 billion in losses in H1 2024
Binance CEO Richard Teng claimed in a post on X that the exchange managed to prevent losses of around $2.4 billion (roughly Rs. 20,130 crore) between January and July this year. According to Binance, over 1.2 million global users were protected from financial losses during this period. Binance, touted as the world’s largest cryptocurrency exchange, said it used artificial intelligence (AI) technology coupled with manual reviews and audits to detect suspicious transactions.
In March this year, Binance’s user holdings crossed the $100 billion mark (approximately Rs. 8,38,719 crore), the exchange announced in a press release. blog at that time. The exchange is taking measures to ensure the safety of these funds and is making it its umpteenth priority.
In a new blog Binance stated that of the $2.4 billion (approximately Rs. 20,130 crore) in losses avoided so far this year, withdrawals related to suspected crypto fraud accounted for over $1.1 billion (approximately Rs. 9,227 crore), which is about 45 percent of the total amount.
Elaborating on its threat monitoring system, the exchange explained that it is powered by “a powerful risk engine that performs real-time monitoring, utilizing a hybrid of AI-based and manual review. This allows the Binance team to dynamically detect suspicious transactions and take swift actions to protect users.” This system has been implemented uniformly across all of Binance’s verticals to protect both individual and institutional investors from financial losses.
The exchange shared an observation that suspicious transactions are most susceptible to identification at the withdrawal stage, when the hacker or scammer attempts to bypass Binance’s security systems.
Rohit Wad, Chief Technology Officer at Binance, commented on the development, saying: “Improving our systems and capabilities to stay ahead of potential threats is an ongoing process as malicious actors never stop coming up with new ways to breach crypto platforms’ defenses.”
That being said, Wad reminded members of the crypto community that they too are responsible for the safety of their funds.
“Ultimately, users play the biggest role in protecting their assets. Stay informed, use strong security practices, and be wary of potential scams,” the CTO added.
In addition to AI and manual monitoring, Binance has also implemented other features such as customized pop-up notifications and wake-up calls to ensure the safety of user funds across eight levels of risk severity parameters.
Earlier this month, the exchange announced that it had recovered $73 million (approximately Rs 612 crore) stolen by hackers and scammers from the global crypto sector (until July 31, 2024).
