As a seasoned crypto investor with years of experience navigating the volatile and sometimes treacherous waters of the digital asset market, I can’t help but feel a sense of relief and admiration upon hearing about Binance’s impressive risk management measures. The fact that they have managed to prevent over $2.4 billion in potential losses from scams and fraudulent activities is nothing short of extraordinary.
In the period between January and July 2024, Binance‘s robust risk management strategies successfully shielded over 1.2 million users from potential losses totaling approximately $2.4 billion that could have stemmed from scams and fraudulent activities.
As per the information in the official press release given to CryptoPotato, Binance constantly keeps watch over potential risks through their internal risk system. This system operates round-the-clock and offers real-time monitoring by integrating artificial intelligence (AI) with human review processes.
Binance’s Internal Risk Engine
As a seasoned user of various cryptocurrency platforms, I can attest to the importance of robust risk management systems that prioritize user protection. In my personal experience, such systems are essential for ensuring a safe and secure environment for all users. The system I currently use employs an advanced risk engine with multiple layers of controls to effectively manage and mitigate risks associated with transactions. This includes monitoring activities like P2P trading, payments, and network withdrawals.
As a seasoned investor with years of experience in the cryptocurrency market, I have witnessed firsthand the pervasive issue of scams that has plagued this industry. This year alone, Binance, one of the leading exchanges, has reportedly thwarted losses amounting to $2.4 billion, with over $1.1 billion, or about 45%, attributed to withdrawals related to suspected crypto scams. The fact that such a significant percentage of these losses can be traced back to scams highlights the importance of vigilance and due diligence when investing in cryptocurrencies.
Commenting on the achievement, Binance’s Chief Technology Office Rohit Wad said,
“Our diligent work over the years has successfully averted approximately $2.4 billion in potential losses within seven months, demonstrating our commitment. We’re pleased that our efforts contribute to a safer user environment and we pledge to uphold our role as an industry leader by continually enhancing our systems and capabilities to stay one step ahead of emerging risks.”
Just recently, it’s been announced that Binance’s security team has successfully safeguarded or immobilized over $73 million worth of user funds, which were lost due to external attacks, as of July 31 this year. Notably, this figure exceeds the roughly $55 million recovered across all of 2023.
Emphasis on Compliance
Recently, the CEO of Binance, Richard Teng, observed a substantial surge in requests for information from law enforcement agencies worldwide. In the course of this year alone, the crypto exchange has received approximately 63,000 inquiries from these entities, as opposed to about 58,000 inquiries in the year 2023. This increase has prompted Binance to step up its efforts in ensuring compliance.
As a crypto investor, I’m seeing that the company is expecting to boost its spending in compliance-related areas beyond the $158 million spent two years ago. This year, they aim to recruit around 1,000 new employees, with a strong emphasis on filling compliance positions. A substantial chunk of these new hires will be allocated towards expanding the compliance team from the current 500 members to approximately 700 by the end of 2024.
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2024-08-25 21:23