How the Exchange is Fighting Crypto Crime

[PRESS RELEASE – Read Disclaimer]

WhiteBIT cryptocurrency change introduced as we speak that it has efficiently secured over $150 million in at-risk cryptocurrency funds in 2024, additional solidifying WhiteBIT’s position as a key associate within the struggle in opposition to digital crime. The secured funds embrace property recovered from third-party hacks and people protected against account breaches and scams.

In response to the Chainalysis 2024 Crypto Crime Report, stolen crypto funds reached $2.2 billion globally, a 21.07% enhance from the earlier 12 months. The variety of hacking incidents rose from 282 in 2023 to 303 over the identical interval, reflecting an ongoing problem for the trade in stopping and addressing safety breaches.

Excessive-Profile Recoveries

WhiteBIT’s efforts have been central to resolving a number of important circumstances involving stolen crypto property. Because of these efforts, the corporate has safeguarded $4.8 million in stolen funds.

The change efficiently secured funds tied to XRP in an investigation involving Ripple co-founder Chris Larsen. In response to the Coinspaid breach, WhiteBIT froze important quantities of cryptocurrency, serving to to mitigate losses for the affected customers. Moreover, the change acted swiftly through the TAO Holder case, identified by blockchain investigator ZachXBT, blocking a big sum of USDC and supporting regulation enforcement efforts of their restoration course of.

In April, cryptocurrency change Rain.com fell sufferer to a $16 million hack orchestrated by the North Korean hacking group Lazarus. Investigators collaborating with the FBI traced $760,000 in stolen SOL to WhiteBIT. In September, WhiteBIT had efficiently returned the funds to the FBI pursuant to a Court docket Order, additional aiding within the restoration course of.

Anti-Cash Laundering Practices 

WhiteBIT is devoted to collaborating with regulation enforcement companies globally to boost safety and defend customers from fraudulent actions. The group locations a powerful emphasis on transparency and streamlined communication, guaranteeing that regulation enforcement can simply join when wanted.

“Our method goes past commonplace AML practices,” acknowledged a consultant from WhiteBIT’s Compliance division. “We leverage OSINT (Open-Supply Intelligence) to uncover suspicious actions meticulously, make the most of custom-built monitoring programs to detect and halt fraudulent transactions, and conduct guide investigations to make sure detailed and correct assessments of flagged circumstances.”

Insights on Cybercrime in 2024

In response to specialists from WhiteBIT’s Compliance Division, the most typical forms of incidents on the change are as follows:

1. Hacking of wallets via technical means—reminiscent of phishing, viruses, keyloggers, and direct hacking—accounts for 40% of the incidents on the change;
2. Social engineering scams: One other 40% is attributed to scams involving guarantees of simple funding returns, typically disguised as legit alternatives. They usually contain subtle ways, together with faux web sites and a number of people interacting with victims to construct belief;
3. Scrolling scams: 10% of victims are lured via crypto-related Telegram channels. Initially, they make small income, which ends up in repeated investments, however finally, the scammers disappear with the funds;
4. The remaining 10% of incidents contain faux variations of the WhiteBIT web site and compromised accounts.

WhiteBIT’s Compliance division consultant explains: “Weak passwords and lack of two-factor authentication (2FA) considerably enhance the chance of compromising the accounts. At WhiteBIT, we mitigate these dangers by storing 96% of funds in chilly wallets, imposing 2FA, and securing personal keys with superior encryption protocols.”

Safety Requirements

WhiteBIT is ranked among the many high 5 most safe crypto exchanges globally by CER.stay and is the primary crypto change to realize the CCSS Stage 3 certification—the very best safety commonplace within the crypto trade in the intervening time. This distinction underscores the change’s proactive efforts to safeguard customers and property in opposition to more and more subtle cyber threats.

WhiteBIT stays on the forefront of crypto safety, combining innovation, compliance, and swift motion to deal with rising threats. In a 12 months marked by record-breaking crypto crime, WhiteBIT’s efforts haven’t solely safeguarded thousands and thousands but additionally set a benchmark for the whole trade.

About WhiteBIT

WhiteBIT is the second change globally by site visitors, providing over 700 buying and selling pairs, 300 property, and supporting 9 fiat currencies. Based in 2018, the platform is part of WhiteBIT Group which serves greater than 35 million prospects worldwide. WhiteBIT collaborates with Visa, FACEIT, FC Barcelona, and the Ukrainian Nationwide Soccer Group. WhiteBIT is among the many most safe crypto exchanges in line with CER.stay and is the primary and solely crypto change to realize the CCSS Stage certification — the very best cryptocurrency safety commonplace within the trade so far. The corporate is devoted to driving the widespread adoption of blockchain know-how worldwide.

This materials doesn’t pertain solely to the corporate’s European transactions however applies to the actions of all WhiteBIT Group firms globally.