In a significant announcement today, WhiteBIT, a leading cryptocurrency exchange, revealed that it has successfully safeguarded over $150 million in at-risk cryptocurrency funds in 2024. This achievement further cements WhiteBIT’s role as a pivotal partner in combating digital crime. The secured funds comprise assets recovered from third-party hacks as well as those that have been protected from account breaches and scams.
Recent data from the Chainalysis 2024 Crypto Crime Report highlights the escalating challenge of cybercrime in the cryptocurrency sector, reporting that stolen crypto funds have reached a staggering $2.2 billion globally—an increase of 21.07% from the previous year. The report also notes a rise in hacking incidents, with the figures climbing from 282 in 2023 to 303 in the present period.
High-Profile Recoveries
WhiteBIT has been instrumental in resolving several high-stakes cases involving stolen crypto assets. Their efforts have led to the safeguarding of $4.8 million in stolen funds. Noteworthy actions include securing funds related to XRP in an investigative case involving Ripple co-founder Chris Larsen and mitigating the impact of the Coinspaid breach by freezing substantial amounts of cryptocurrency, thereby protecting users from significant losses. Moreover, during the TAO Holder investigation identified by blockchain investigator ZachXBT, WhiteBIT effectively blocked a considerable sum of USDC, supporting law enforcement’s recovery initiatives.
In April, the cryptocurrency exchange Rain.com faced a devastating $16 million hack orchestrated by the notorious North Korean hacking group, Lazarus. In collaboration with the FBI, investigators traced $760,000 in stolen SOL to WhiteBIT. The exchange swiftly returned these funds to the FBI pursuant to a Court Order, aiding the larger recovery mission.
Anti-Money Laundering Practices
WhiteBIT is committed to fostering collaboration with global law enforcement agencies to enhance security measures and protect users from fraudulent activities. Emphasizing transparency and efficient communication, WhiteBIT ensures that law enforcement can readily engage when necessary.
“Our approach goes beyond standard AML practices,” stated a representative from WhiteBIT’s Compliance department. “We leverage OSINT (Open-Source Intelligence) to uncover suspicious activities meticulously, utilize custom-built monitoring systems to detect and halt fraudulent transactions, and conduct manual investigations to ensure detailed and accurate assessments of flagged cases.”
Insights on Cybercrime in 2024
Experts from WhiteBIT’s Compliance Department have identified the most prevalent types of incidents on the exchange:
- Hacking of wallets through technical means: 40% of incidents are related to phishing, viruses, keyloggers, and direct hacking;
- Social engineering scams: Another 40% stem from scams promising easy investment returns, often disguised as legitimate opportunities, involving fake websites and sophisticated tactics;
- Scrolling scams: 10% of victims are lured through crypto-related Telegram channels, where initial small profits lead to greater investment, ultimately resulting in losses as scammers vanish;
- The remaining 10% of incidents involve fake versions of the WhiteBIT website and compromised accounts.
A representative from WhiteBIT’s Compliance department noted: “Weak passwords and lack of two-factor authentication (2FA) significantly increase the risk of compromising accounts. At WhiteBIT, we mitigate these risks by storing 96% of funds in cold wallets, enforcing 2FA, and securing private keys with advanced encryption protocols.”
Security Standards
Ranked among the top five most secure crypto exchanges globally by CER.live, WhiteBIT is also the first crypto exchange to achieve CCSS Level 3 certification—the highest security standard currently available in the crypto industry. This distinction emphasizes the exchange’s proactive endeavors to protect users and their assets against increasingly sophisticated cyber threats.
As the market grapples with a rise in crypto crime, WhiteBIT stands at the forefront of security measures, balancing innovation and compliance while responding swiftly to emerging threats. With a track record of securing millions in stolen assets, WhiteBIT is setting a benchmark for the industry at large.
About WhiteBIT
Founded in 2018, WhiteBIT ranks as the second exchange globally by traffic, offering over 700 trading pairs, 300 assets, and supporting nine fiat currencies. Serving over 35 million customers, WhiteBIT is associated with prominent entities including Visa and FC Barcelona. Dedicated to promoting the widespread adoption of blockchain technology, WhiteBIT continues to lead in security and reliability within the crypto exchange space.
This material pertains to the activities of all WhiteBIT Group companies globally.
