How the Exchange is Fighting Crypto Crime

[PRESS RELEASE – Read Disclaimer]

WhiteBIT cryptocurrency exchange announced today that it has successfully secured over $150 million in at-risk cryptocurrency funds in 2024, further solidifying WhiteBIT’s role as a key partner in the fight against digital crime. The secured funds include assets recovered from third-party hacks and those protected from account breaches and scams.

According to the Chainalysis 2024 Crypto Crime Report, stolen crypto funds reached $2.2 billion globally, a 21.07% increase from the previous year. The number of hacking incidents rose from 282 in 2023 to 303 over the same period, reflecting an ongoing challenge for the industry in preventing and addressing security breaches.

High-Profile Recoveries

WhiteBIT’s efforts have been central to resolving several significant cases involving stolen crypto assets. As a result of these efforts, the company has safeguarded $4.8 million in stolen funds.

The exchange successfully secured funds tied to XRP in an investigation involving Ripple co-founder Chris Larsen. In response to the Coinspaid breach, WhiteBIT froze significant amounts of cryptocurrency, helping to mitigate losses for the affected users. Additionally, the exchange acted swiftly during the TAO Holder case, identified by blockchain investigator ZachXBT, blocking a large sum of USDC and supporting law enforcement efforts in their recovery process.

In April, cryptocurrency exchange Rain.com fell victim 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 successfully returned the funds to the FBI pursuant to a Court Order, further aiding in the recovery process.

Anti-Money Laundering Practices 

WhiteBIT is dedicated to collaborating with law enforcement agencies globally to enhance security and protect users from fraudulent activities. The team places a strong emphasis on transparency and streamlined communication, ensuring that law enforcement can easily connect when needed.

“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

According to experts from WhiteBIT’s Compliance Department, the most common types of incidents on the exchange are as follows:

1. Hacking of wallets through technical means—such as phishing, viruses, keyloggers, and direct hacking—accounts for 40% of the incidents on the exchange;
2. Social engineering scams: Another 40% is attributed to scams involving promises of easy investment returns, often disguised as legitimate opportunities. They typically involve sophisticated tactics, including fake websites and multiple individuals interacting with victims to build trust;
3. Scrolling scams: 10% of victims are lured through crypto-related Telegram channels. Initially, they make small profits, which leads to repeated investments, but eventually, the scammers disappear with the funds;
4. The remaining 10% of incidents involve fake versions of the WhiteBIT website and compromised accounts.

WhiteBIT’s Compliance department representative explains: “Weak passwords and lack of two-factor authentication (2FA) significantly increase the risk of compromising the 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

WhiteBIT is ranked among the top 5 most secure crypto exchanges globally by CER.live and is the first crypto exchange to achieve the CCSS Level 3 certification—the highest security standard in the crypto industry at the moment. This distinction underscores the exchange’s proactive efforts to safeguard users and assets against increasingly sophisticated cyber threats.

WhiteBIT remains at the forefront of crypto security, combining innovation, compliance, and swift action to tackle emerging threats. In a year marked by record-breaking crypto crime, WhiteBIT’s efforts have not only safeguarded millions but also set a benchmark for the entire industry.

About WhiteBIT

WhiteBIT is the second exchange globally by traffic, offering over 700 trading pairs, 300 assets, and supporting 9 fiat currencies. Founded in 2018, the platform is a part of WhiteBIT Group which serves more than 35 million customers worldwide. WhiteBIT collaborates with Visa, FACEIT, FC Barcelona, and the Ukrainian National Football Team. WhiteBIT is among the most secure crypto exchanges according to CER.live and is the first and only crypto exchange to achieve the CCSS Level certification — the highest cryptocurrency security standard in the industry to date. The company is dedicated to driving the widespread adoption of blockchain technology worldwide.

This material does not pertain solely to the company’s European transactions but applies to the activities of all WhiteBIT Group companies globally.