The year 2024 witnessed a significant decline in cryptocurrency-related crime, marking a turning point in the fight against illicit activities in the digital finance space. Chainalysis’s 2025 Crypto Crime report revealed a substantial drop in the value received by illicit cryptocurrency addresses, falling to $40.9 billion, a stark contrast to the previous year. Even more encouraging, the percentage of crypto transactions linked to illicit activity plummeted to a mere 0.14%, down from 0.61% in 2023. This positive trend, while based on lower-bound estimates, signifies the success of collective efforts by users, platforms, law enforcement, and industry leaders in bolstering the security of the digital finance landscape. The decline in criminal activity, despite the exponential growth in users, inflows, and market capitalization, underscores the effectiveness of these combined efforts to create a safer environment for innovation and growth within the crypto ecosystem.
Binance, as a leading player in the cryptocurrency industry, played a pivotal role in contributing to this progress. The company invested hundreds of millions of dollars in compliance programs, building a robust team of 650 compliance professionals and securing 21 global regulatory authorizations, exceeding any other exchange. This significant investment not only fortified Binance’s internal operations but also laid the groundwork for a more secure digital financial ecosystem. Through enhanced platform security and proactive risk management, Binance cemented its position as a trusted industry leader, prioritizing user safety and promoting responsible growth within the crypto space.
Binance’s proactive risk management strategy in 2024 set a new industry standard for user protection. The launch of the Risk Sniper channel on Binance Square provided real-time alerts about high-risk addresses and links, creating a safer environment for users navigating the complexities of the cryptocurrency market. This channel also served as an educational platform, offering resources like the Know Your Scam series and security blogs, empowering users to identify and report emerging scams. Internally, Binance’s Risk Team identified and removed over 1,000 high-risk posts, demonstrating the company’s commitment to protecting its community from malicious activities. This focus on prevention as the first line of defense highlights Binance’s commitment to building a secure and trustworthy digital financial ecosystem.
Furthermore, Binance leveraged advanced technology to enhance user protection. Over 50 machine learning models were developed specifically to detect scam activity, particularly on the P2P platform, with 14 major updates implemented throughout the year to adapt to evolving scammer tactics. These AI-powered systems analyzed vast amounts of data in real-time, providing predictive insights and identifying potential risks before scam transactions could occur. Behavioral profiling played a crucial role in differentiating legitimate user activity from suspicious behavior, enabling precise interventions. These initiatives resulted in the recovery of $9.1 million for scam victims, the blacklisting of 47,000 malicious addresses, and the prevention of over $4.2 billion in potential losses, protecting 2.8 million users worldwide. Binance’s swift response capabilities, enabled by real-time monitoring, further demonstrated the effectiveness of its AI-driven risk management approach.
Beyond prevention, Binance actively assisted users in recovering misplaced, lost, or stolen funds. In 2024, the company’s dedicated teams facilitated the recovery of $88 million in crypto assets related to hacks, exploits, and theft, even when the incidents occurred on external platforms. This unwavering commitment to supporting users in reclaiming their assets underscores Binance’s dedication to user security and trust.
Collaboration with law enforcement agencies worldwide formed the cornerstone of Binance’s security strategy. Throughout 2024, Binance responded to over 64,800 law enforcement requests and assisted 14,800 registered officials, providing crucial intelligence and operational support. These partnerships yielded significant results, including the dismantling of a multi-million-dollar criminal syndicate in Hong Kong involved in illicit activities using virtual assets. Binance’s assistance led to the arrest of several individuals, including the group’s leader, effectively shutting down their operations. Similar successes were achieved in Indonesia, India, Malaysia, Thailand, and the Netherlands, demonstrating the impact of international cooperation in combating crypto crime. Beyond investigative support, Binance enhanced law enforcement capabilities through specialized training programs on virtual asset investigations, including the global Law Enforcement Training Program and Binance Law Enforcement Day, equipping agents from 86 countries with advanced blockchain tracing techniques. Furthermore, Binance actively participated in collaborative initiatives like the Cybercrime Atlas, hosted by the World Economic Forum, contributing to the mapping and disruption of digital crime networks. The partnership with INHOPE further solidified Binance’s commitment to online safety, focusing on combating online child sexual abuse material (CSAM) through real-time detection and reporting of illicit transactions.
