- Binance has launched a joint anti-fraud campaign to combat crypto-related scams.
- High-profile hacks have undermined customer confidence in centralized exchanges.
The world’s largest cryptocurrency exchange, Binance was at the center of a sensational $570 million hack in October last year.
Hackers took advantage of a bug in the BNB chain’s smart contract and transferred around 2 million tokens to their wallets. After the hack, Binance had to immediately stop withdrawals and deposits.
One of the biggest breaches in the crypto space, the incident raised questions about the security of decentralized finance (DeFi). But the question is – have corrective measures been taken?
Read it Binance Coin [BNB] Price forecast 2023-24
Binance has launched an anti-fraud campaign
On March 5, Binance announced that it will partner with law enforcement agencies around the world to combat crypto-related fraud.
The exchange said it has launched a Joint Anti-Fraud Campaign that will include sending alerts, crime prevention messages and other helpful tips when users initiate Binance withdrawals.
The exchange added that it has started this campaign with Hong Kong first and the project has shown good results.
Binance has partnered with law enforcement agencies to launch a joint anti-fraud campaign | Binance Blog https://t.co/t3P78R0B6L
— CZ 🔶 Binance (@cz_binance) March 5, 2023
The hacks undermined the confidence of merchants
It is important to note that these high profile hacks coupled with FTX crashundermined customer confidence in centralized exchanges (CEX).
Analysis by Dune Analytics revealed that CEX trading volume has decreased significantly since November, while decentralized exchanges (DEX) have seen a significant increase.
From around $1 billion in early October 2022, the DEX’s daily volume exploded to over $6 billion in one month.
Source: Dune Analytics
Additionally, according to Binance’s proof of reserves data, its total balance fell from $44.4 billion in early October to $33 billion by the end of December, a drop of nearly 21%. This shows that the liquidity of the exchange is affected to a great extent.
Source: Dune Analytics
How many 1,10,100 BNB worth today?
Recently, Binance has been facing a lot of regulatory issues. According to a report by BloombergA lawyer for the US Securities and Exchange Commission (SEC) said that most SEC officials believe that Binance.US operates an unregistered securities exchange.
At the time of writing, its token BNB is exchanging hands at $290.39 with slight gains from the previous day, according to CoinMarketCap. As a result of increased scrutiny by US regulators, the coin has lost 10% of its value in the past month.
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