Binance Claims to Have Recovered $73 Million of Funds Stolen via Hacks, Scams in Q2 2024

The exchange has also claimed that it has helped users those have been affected by hacks to get their funds back.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 9 August 2024 16:09 IST

Binance Claims to Have Recovered $73 Million of Funds Stolen via Hacks, Scams in Q2 2024

Photo Credit: Reuters

Binance had recovered $55 million (roughly Rs. 461 crore) in 2023

Highlights

Binance has credited blockchain functionalities for fund recoveries
The crypto sector is seeing back-to-back hacks leading to hefty losses
Binance security head has warned new crypto investors to be cautious

Binance has revealed in an announcement that it has recovered $73 million (approximately Rs. 612 crore) stolen by hackers and scammers from the global crypto sector as of July 31, 2024. The world's largest cryptocurrency exchange, in a statement shared with Gadgets360, highlighted blockchain technology as a powerful tool in gathering evidence against cybercriminals. Binance emphasized that these recovery efforts are aimed at maintaining public trust in the cryptocurrency sector.

Binance's security team has been credited with achieving this milestone. The platform identified and secured funds linked to hacks or scams that had infiltrated Binance. The company also claimed that it has assisted affected users in recovering their stolen funds.

“Binance's security team has recovered or otherwise frozen over $73 million (roughly Rs. 612 crore) in user funds from external hacks as of July 31 this year. This surpasses the approximately $55 million (roughly Rs. 461 crore) secured throughout 2023,” the exchange said, highlighting that its security efforts have improved in the last one year,” the exchange said.

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Out of the total funds recovered, the exchange said that around 80 percent were stolen through hacks and exploits while the remaining 20 percent were lost due to scams that happened outside of Binance's ecosystem.

The unique properties of blockchain technology, the exchange said, have proved to work in its advantage for tracking the stolen funds.

“The innate nature of the blockchain, where all transactions are public and trackable, makes it easier to track and recover funds. This public record allows for easier identification and monitoring of potentially suspicious activity,” the multi-national exchange noted.

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The crypto industry, currently valued at $2.15 trillion (roughly Rs. 1,80,41,649 crore), has faced an increasing wave of cyberattacks from criminals targeting the sector.

As per a recent Immunefi report, the second quarter of 2024 saw crypto scams spike by 91 percent, compared to the second quarter of 2023. The crypto sector lost a total of $509 million (roughly Rs. 4,261 crore) to cybercrimes between April and June this year.

Hackers are also getting more advanced by the day, attacking crypto protocols one after the other. Just last month, a wave of attacks hit the crypto sector leaving multiple crypto projects including LiFi, WazirX, dYdX, Fractal ID, and MonoSwap financially affected.

Commenting on the situation, Binance's Chief Security Officer Jimmy Su has warned new crypto users to be extra caution.

“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 noted.

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Further reading: Cryptocurrency, Binance, Crypto Hacks, Scams

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More