Reveal the battle of exchange for digital crime

White-bit cryptocurrency exchanges have emerged as a formidable force in the landscape that is targeted by sophisticated cybercriminals, and today announced that they had secured more than $150 million in risky cryptocurrency funds in 2024.

This achievement highlights Whitebit’s important role as an unstable partner in the ongoing battle with digital crime.

According to the Chainalysis 2024 Crypto Crime Report, global theft of cryptocurrencies reached an astounding $2.2 billion theft, up 21.07% from the previous year.

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

Famous recovery: cracks in the case

Whitebit’s aggressive efforts prove their way to solve several well-known cases, including stolen crypto assets.

These efforts have successfully secured $4.8 million in stolen funds.

The exchange played a pivotal role in securing XRP-related funding in a study involving Ripple co-founder Chris Larsen.

In response to Coinspaid violations, Whitebit has frozen a significant amount of cryptocurrency and effectively mitigate the losses of affected users.

Furthermore, in the case of the TAO holder, identified by blockchain investigator ZACHXBT, the exchange acted decisively, blocking a significant total of USDC totals and providing important support to law enforcement in recovery efforts.

In a particularly noteworthy case, Whitebit collaborated with the FBI after a $16 million Cryptocurrency Exchange rain.com, which was made by the infamous North Korean hacking group Lazarus. Investigators tracked $760,000 on the stolen sol to Whitebit.

Demonstrating its commitment to the court, Whitebit returned the funds to the FBI in September, providing great support in the recovery process as per court orders.

Beyond AML: A proactive approach to security

Whitebit is deeply committed to working with law enforcement agencies around the world to enhance security and protect users from fraud.

Teams prioritize transparency and streamlined communication, making it easy for law enforcement to connect when needed.

“Our approach goes beyond standard AML practices,” explained a representative from Whitebit’s compliance department.

Leverages OSINT (Open Source Intelligence) to carefully identify suspicious activity, utilize custom built monitoring systems to detect and stop fraudulent transactions, and conduct manual investigations to ensure detailed and accurate assessments of flagged cases.

Cybercrime insights: reveal tactics

Experts in Whitebit’s compliance department have identified the most common types of incidents occurring on exchanges.

• Wallet Hacking (40%): This includes phishing, viruses, keyloggers and direct hacking attacks.
• Social Engineering Scam (40%): These scams promise simple investment returns that are often disguised as legitimate opportunities, and employ sophisticated tactics to build trust with the victims.
• Scrolling fraud (10%): Victims are seduced through crypto-related telegram channels with their first small profits, leading to big investments before the scammers disappear.
• Fake websites and compromised accounts (10%): These incidents include unauthorized versions of the Whitebit website and violations of user accounts.

Representatives from Whitebit’s compliance department highlighted the key role of user security practices.

A weak password and a lack of two-factor authentication (2FA) significantly increase the risk of damaging your account. Whitebit reduces these risks by storing 96% of your funds in a cold wallet, implementing 2FA, and securing a private key with advanced encryption protocols.

Setting security standards: industry leaders

Whitebit’s commitment to security has earned IT recognition by Cer.Live as one of the top five most secure crypto exchanges worldwide.

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

These praises highlight the proactive exchange efforts to protect users and assets from increasingly complex and sophisticated cyber threats.

In a year marked by record levels of crypto crime, Whitebit remains a pioneer in crypto security, combining innovation, compliance and critical action to deal with emerging threats.

The efforts not only protected millions of dollars, but also set industry-wide benchmarks, indicating that a proactive and comprehensive approach to security is essential in the fight against digital crime.

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