WhiteBIT Freezes $150M in Stolen Crypto: Here’s How

According to the 2024 Chainalysis report on crypto crime, the total value of stolen crypto assets worldwide reached $2.2 billion, a 21.07% increase from the previous year. The number of hacking incidents rose from 282 in 2023 to 303 in 2024, underscoring the ongoing challenges in combating cyber threats within the industry.

Major Cases of Stolen Asset Recovery

WhiteBIT, Europe’s largest cryptocurrency exchange, has played a crucial role in mitigating the impact of several high-profile crypto thefts. According to an official press release, the exchange blocked $4.8 million in stolen funds linked to cyberattacks on multiple platforms.

Among the most notable cases, WhiteBIT froze XRP-related assets connected to Ripple co-founder Chris Larsen. The exchange also blocked significant amounts of cryptocurrency after the Coinspaid hack, helping minimize losses for affected users.

Additionally, WhiteBIT acted swiftly in the TAO Holder case, which was investigated by blockchain analyst ZachXBT. The exchange froze a large sum in USDC stablecoins and worked with law enforcement to assist in the recovery process.

In April 2024, the Rain.com exchange was hacked for $16 million in an attack attributed to the North Korean Lazarus Group. The FBI tracked $760,000 in stolen SOL tokens that had been moved to WhiteBIT. By September, the exchange successfully returned the funds to the FBI in compliance with a court order, aiding in the recovery of stolen assets.

Related:WhiteBIT Surpasses Kraken in Annual Trading Volume

WhiteBIT’s Approach to Combating Money Laundering

WhiteBIT works closely with law enforcement agencies worldwide, strengthening security measures and protecting users from fraud. The exchange prioritizes transparency and swift communication, ensuring authorities can quickly access critical information when necessary.

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

Related:QuickSend on WhiteBIT: The Simplest Way to Send Crypto

Cybercrime in 2024: Key Threats to Crypto Users

According to WhiteBIT, the most common security incidents on the exchange are:

• 40% – Wallet breaches through technical exploits, including phishing, malware, keyloggers, and direct hacking.
• 40% – Social engineering scams, which promise “easy profits” and disguise themselves as investment opportunities. These often involve fake websites and a network of scammers who gradually gain the victim’s trust.
• 10% – Fraud via Telegram channels, where victims are shown small initial profits to encourage reinvestment, only for the scammers to disappear with their funds.
• 10% – Attacks involving fake WhiteBIT websites and compromised accounts.

“Weak passwords and the absence of two-factor authentication (2FA) significantly increase the risk of account breaches,” explains a WhiteBIT representative. “To reduce these risks, we store 96% of funds in cold wallets, enforce mandatory 2FA, and encrypt private keys using advanced security algorithms.”

WhiteBIT’s Security Standards

WhiteBIT is ranked among the world’s most secure crypto exchanges by CER.live and is the first exchange to achieve CCSS Level 3 certification, the highest security standard in the crypto industry.

As a leader in crypto security, WhiteBIT integrates cutting-edge technology, regulatory compliance, and swift threat response. In a year when crypto crime reached record levels, the exchange not only protected millions in assets but also set a new industry benchmark for security.