Binance, the world’s largest cryptocurrency exchange, announced on Thursday that it has restored $4.4 billion worth of digital assets for its users who made mistakes in their deposits in the past two years. The exchange said it resolved 381,616 cases of cryptocurrency that were deposited by users but not credited due to various reasons, such as entering wrong wallet addresses, depositing incompatible tokens, and problems from blockchain upgrades.
Binance’s Efforts to Protect Users and Uphold Integrity
The report, which also mentions efforts to deal with hackers and other crimes, comes as the exchange is reshaping itself after pleading guilty last year to US charges of anti-money laundering and sanctions violations. The district judge approving the company’s plea deal, which includes a $4.3 billion fine, noted last week that Binance had left participants in the financial system vulnerable to exploitation by bad actors.
“To nurture the ecosystem’s growth in its still-early period, industry leaders like Binance should use their reach and resources to lend support to other participants in the emerging marketplace, protecting users and upholding the integrity of the space,” Binance said in the report.
The exchange also said it has enhanced its security measures and compliance standards, such as implementing a global KYC (know your customer) policy, conducting regular audits and reviews, and cooperating with law enforcement agencies.
Binance’s Founder and CEO Resigns After Pleading Guilty
Binance’s founder and chief executive officer (CEO), Changpeng Zhao, a Canadian national, also pleaded guilty to failing to maintain an effective anti-money laundering (AML) program in violation of the Bank Secrecy Act and has resigned as CEO of Binance. Zhao admitted that he knowingly allowed US customers to use Binance.com without complying with US laws and regulations, such as registering as a money-transmitting business, reporting suspicious transactions, and screening for sanctioned individuals and entities.
Zhao agreed to pay a $50 million fine and to cooperate with the authorities in any ongoing or future investigations. He also agreed to forfeit any assets or proceeds derived from his criminal conduct.
“Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed; now it is paying one of the largest corporate penalties in U.S. history,” said Attorney General Merrick B. Garland. “The message here should be clear: using new technology to break the law does not make you a disruptor; it makes you a criminal.”
Future Plans and Challenges
Binance said it will continue to serve its customers and partners with the highest standards of professionalism and transparency. The exchange said it will focus on developing its products and services, such as Binance Smart Chain, Binance NFT, and Binance Pay, to provide more value and innovation to the crypto industry.
However, Binance also faces several challenges and uncertainties, such as regulatory scrutiny, market volatility, and cyber threats. Jimmy Su, chief security officer at Binance, said in an interview that as market sentiment turns bullish, “rug pulls”—a type of scam in crypto where a developer hypes a project to attract money and then disappears with the funds—are returning.
Su said Binance is working hard to prevent and detect such frauds and to educate its users about the risks and best practices of crypto investing. He also urged the users to be vigilant and cautious and to report any suspicious activities or transactions to Binance’s customer support or security team.
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