Binance Prevented $2.4 Billion in Losses in H1 2024, 45 Percent Were Linked to Scams: Report

Binance CEO Richard Teng, in a post on X, claimed that the exchange has 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 against financial losses during this period. Touted as the largest crypto exchange in the world, Binance says it leveraged artificial intelligence (AI) technology coupled with manual reviews and audits to detect suspicious transactions.

As of March this year, Binance's user asset holdings exceeded the mark of $100 billion (roughly Rs. 8,38,719 crore), the exchange had said in a blog at the time. The exchange is taking measures to ensure the safety of these funds and making it its umpteenth priority.

In a new blog Binance stated that out of the $2.4 billion (roughly Rs. 20,130 crore) prevented in losses so far this year, withdrawals linked to suspected crypto scams made up over $1.1 billion (roughly Rs. 9,227 crore), which is about 45 percent of the total amount.

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Elaborating on its threat monitoring system the exchange explained that it is fueled by, “a powerful risk engine that conducts real-time monitoring, leveraging a hybrid of AI-based and manual review. This allows the Binance team to dynamically detect suspicious transactions and take action to protect users quickly.” This system has been deployed uniformly across all of Binance's verticals to protect both, individual and institutional investors against financial losses.

The exchange has shared an observation that suspicious transactions are most susceptible to being identified at the withdrawal stage, where the hacker or scammer is trying to bypass Binance's security systems.

Rohit Wad, Chief Technology Officer at Binance commented on the development saying, “The work of improving our systems and capabilities to stay ahead of potential threats is a continuous process as bad actors never stop devising new ways to breach crypto platforms' defenses.”

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That said, Wad has instructed members of the crypto community that they, too, are responsible for maintaining the safety of their funds.

“Ultimately, users themselves play the largest role in safeguarding their assets. Stay informed, use strong security practices, and be cautious of potential scams,” the CTO added.

Along with AI and manual monitoring, Binance said it has deployed other features like customised pop-up notifications and wakeup calls to maintain safety of user funds across eight levels of risk severity parameters.

Earlier this month, the exchange had announced that it had recovered $73 million (approximately Rs. 612 crore) stolen by hackers and scammers from the global crypto sector as of July 31, 2024.

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Binance Prevented $2.4 Billion in Losses in H1 2024, 45 Percent Were Linked to Scams: Report

Binance Prevented $2.4 Billion in Losses in H1 2024, 45 Percent Were Linked to Scams: Report

Binance Prevented $2.4 Billion in Losses in H1 2024, 45 Percent Were Linked to Scams: Report

Binance Prevented $2.4 Billion in Losses in H1 2024, 45 Percent Were Linked to Scams: Report

Binance Prevented $2.4 Billion in Losses in H1 2024, 45 Percent Were Linked to Scams: Report