- Binance’s AI and manual monitoring saved $2.4B from scams, protecting 1.2M users globally from January to July 2024.
- 45% of averted losses were due to suspicious crypto withdrawals, highlighting Binance's focus on securing this vulnerable process.
- Binance introduced USD-Margined VOXEL contracts with 50x leverage, enhancing trading options and flexibility for investors.
Richard Teng, the CEO of Binance, disclosed that the exchange stopped scammers and fraudsters from potentially losing nearly $2.4 billion. This achievement impacted more than 1.2 million users worldwide.
The impressive results are credited to Binance’s advanced risk management and monitoring systems, active from January to July 2024. Teng detailed these milestones in a recent update on X, underscoring the platform's commitment to user protection.
Robust Risk Management System
Binance’s success stems from a robust blend of artificial intelligence (AI) and manual intervention. The exchange employs a sophisticated risk engine that operates around the clock. This hybrid approach ensures the real-time monitoring of transactions, effectively identifying and addressing suspicious activities. The integration of AI with human oversight enhances the system's ability to detect fraud swiftly.
Moreover, Teng emphasized that a portion of avoided losses was linked to crypto withdrawal monitoring. Specifically, out of the $2.4 billion in prevented losses, over $1.1 billion—45%—originated from suspicious withdrawal activities. This highlights the importance of securing the withdrawal process, which remains a key vulnerability.
Ongoing Security Challenges and New Offerings
Binance's risk management infrastructure includes multiple layers of controls. This setup features AI-driven transaction monitoring, manual reviews, and customizable alerts. Consequently, these measures eliminate threats before they can cause financial harm. The platform’s proactive approach plays a crucial role in maintaining user trust in a high-risk environment.
Despite Binance’s effective measures, the crypto industry faces ongoing security challenges. For example, the $238 million Bitcoin robbery, shows these ongoing dangers. Even though Binance was not connected to this breach, it is a clear reminder of the weaknesses in the cryptocurrency market.
Along with security improvements, Binance has launched USD-Margined VOXEL perpetual contracts. With this new service, traders can increase flexibility and possible rewards by up to 50x leverage. This move is in line with Binance's larger plan to offer a wider range of trading alternatives and accommodate different investor preferences.
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