$213m spent to combat cryptocurrency fraud in 2023 – Binance

Cryptocurrency The Binance exchange has said it invested $213 million in its compliance program in 2023 to combat fraud and strengthen security.

The information was revealed in a statement sent to SUNDAY PUNCH by Romaana Sutton, conversation architect at JNPR, the PR agency representing the exchange.

The exchange noted that a significant funding allocation underscored its proactive stance to protect its platform and its users against fraudulent activities within the cryptocurrency ecosystem.

"Between 2022 and 2023, the amount Binance committed to its compliance program increased from $158 million to $213 million, an increase of 35 percent."

The company said it also invested in world-class talent, building or acquiring industry-leading technology and implementing efficient policies and processes.

Binance revealed that it constantly monitored transaction flows on and off its platform using a combination of automated and manual approaches.

According to the exchange, in 2023, it improved transaction monitoring capabilities and added that its on-chain monitoring team processed 677,772 on-chain alerts.

"By implementing a new automation tool, Binance achieved a 150 percent increase in on-chain transaction monitoring productivity, meaning more potential threats were analyzed and addressed with the same amount of resources allocated," he claimed.

He noted that he didn't just look at blockchain exposure; Its specially designed enhanced tools also monitor suspicious transactions made internally.

He stated: “In 2023, Binance analysts reviewed and closed 2,648,318 off-chain alerts. As a result of implementing new tools, both internal and external, the company increased the productivity of these efforts by approximately 40% compared to last year.”

Cryptocurrency crime declined in 2023, according to the 2024 Cryptocurrency Crime Report recently released by blockchain data company Chainalysis.

The total value of digital assets received through illicit addresses also showed a considerable decrease between 2022 and 2023, going from $39.6 billion to $24.2 billion.

The share of illicit transactions in the total crypto transaction volume decreased from 0.42 percent to 0.34 percent.

“These include assets stolen in cryptocurrency hacks, as well as funds sent to wallets that Chainalysis analysts designated as illicit, those associated with ransomware groups, scam shops, darknet markets, and online drug sellers; addresses linked to terrorist financing and sanctioned entities and jurisdictions, and other relevant categories,” the report states.

The report attributed the decline to the result of the crypto industry as a whole stepping up its collaborative security efforts, honing its defenses, and strengthening its collaboration with law enforcement agencies.

The average cryptocurrency user was also likely to have become more vigilant and aware of dangers such as scams and fraud, the report added.

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