WhiteBIT’s $150M crypto shield: unmasking the exchange’s fight against digital crime

In a landscape increasingly targeted by sophisticated cybercriminals, WhiteBIT cryptocurrency exchange has emerged as a formidable force, announcing today that it successfully secured over $150 million in at-risk cryptocurrency funds in 2024.

This achievement underscores WhiteBIT’s crucial role as a steadfast partner in the ongoing battle against digital crime.

According to the Chainalysis 2024 Crypto Crime Report, the global theft of cryptocurrency reached a staggering $2.2 billion, a 21.07% increase from the previous year.

The number of hacking incidents also surged from 282 in 2023 to 303 in the same period, highlighting the persistent and escalating challenges the industry faces in preventing and addressing security breaches.

High-profile recoveries: cracking the cases

WhiteBIT’s proactive efforts have proven instrumental in resolving several high-profile cases involving stolen crypto assets.

These efforts have resulted in the successful safeguarding of $4.8 million in pilfered funds.

The exchange played a pivotal role in securing funds related to XRP in an investigation involving Ripple co-founder Chris Larsen.

Responding swiftly to the Coinspaid breach, WhiteBIT froze significant amounts of cryptocurrency, effectively mitigating losses for affected users.

Furthermore, during the TAO Holder case, identified by blockchain investigator ZachXBT, the exchange acted decisively, blocking a substantial sum of USDC and providing crucial support to law enforcement in their recovery efforts.

In a particularly noteworthy case, WhiteBIT collaborated with the FBI following a $16 million hack of cryptocurrency exchange Rain.com, perpetrated by the infamous North Korean hacking group Lazarus. Investigators traced $760,000 in stolen SOL to WhiteBIT.

Demonstrating its commitment to justice, WhiteBIT successfully returned the funds to the FBI in September, pursuant to a Court Order, providing significant assistance in the recovery process.

Beyond AML: a proactive approach to security

WhiteBIT is deeply committed to working with law enforcement agencies worldwide to bolster security and protect users from fraudulent activities.

The team prioritizes transparency and streamlined communication, ensuring that law enforcement can easily connect when needed.

“Our approach goes beyond standard AML practices,” explained 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.

Cybercrime insights: unveiling the tactics

Experts from WhiteBIT’s Compliance Department have identified the most prevalent types of incidents occurring on the exchange:

• Hacking of wallets (40%): This includes phishing, viruses, keyloggers, and direct hacking attacks.
• Social engineering scams (40%): These scams promise easy investment returns, often disguised as legitimate opportunities, and employ sophisticated tactics to build trust with victims.
• Scrolling scams (10%): Victims are lured through crypto-related Telegram channels with initial small profits, leading to larger investments before the scammers vanish.
• Fake websites and compromised accounts (10%): These incidents involve fraudulent versions of the WhiteBIT website and compromised user accounts.

A representative from WhiteBIT’s Compliance department emphasized the critical role of user security practices:

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.

Setting the standard for security: a leader in the industry

WhiteBIT’s commitment to security has earned it recognition as one of the top 5 most secure crypto exchanges globally by CER.live.

Furthermore, WhiteBIT is the first crypto exchange to achieve the CCSS Level 3 certification – the highest security standard in the crypto industry today.

These accolades underscore the exchange’s proactive efforts to protect users and assets against increasingly complex and sophisticated cyber threats.

In a year marked by record-breaking levels of crypto crime, WhiteBIT remains at the vanguard of crypto security, combining innovation, compliance, and decisive action to address emerging threats.

Its efforts have not only safeguarded millions of dollars but have also set a benchmark for the entire industry, demonstrating that a proactive and comprehensive approach to security is essential in the fight against digital crime.

The post WhiteBIT’s $150M crypto shield: unmasking the exchange’s fight against digital crime appeared first on Invezz

Source