CZ Shares How Binance Freezes Stolen Funds
Binance CEO Changpeng Zhao (CZ) recently took to social media to share a story about how the crypto exchange was able to freeze stolen funds. The incident involved the abduction of executives from a Binance client while on a business trip in Montenegro. These executives were forced to empty their crypto wallets, resulting in a loss of approximately $12.5 million.
According to CZ, Binance launched an investigation into the on-chain activities of the crypto transactions and collaborated with its partners to freeze the wallet containing the stolen funds. The funds, which were all in tether (USDT) and transferred to a Tron wallet, were mostly recovered by Binance. They managed to freeze around $11.8 million, equivalent to 94.4% of the total stolen amount.
CZ addressed concerns about the security of crypto wallets compared to fiat currencies kept in banks. He emphasized that it’s a matter of balance and personal choice. Additionally, he explained that while Bitcoin can be traced, it cannot be frozen until it is sent to a centralized exchange.
Binance Customer Support Procedures for Stolen Funds
Binance Customer Support also shared the exchange’s standard procedure for dealing with stolen funds sent to Binance. If you believe your assets have been stolen, Binance may grant a temporary courtesy freeze upon receiving relevant information. To keep the assets frozen, you must provide a police report within 7 days after contacting Binance Support.
Binance Launches Web3 Wallet
Last week, Binance introduced a Web3 wallet designed to make self-custody more accessible for users. Described as “a self-custody crypto wallet built within the Binance app,” this new product divides a user’s private keys into three smaller parts known as key-shares. Two out of the three key-shares are controlled by users, ensuring that the Web3 Wallet remains self-custodial.
Hot Take: CZ’s Story Highlights Importance of Security Measures
Changpeng Zhao’s account of how Binance froze stolen funds underscores the critical importance of security measures when dealing with cryptocurrencies. While blockchain technology offers many benefits, it’s clear that protecting your assets requires proactive efforts and careful consideration of how and where you store your funds. CZ’s story serves as a reminder that security should be a top priority for anyone involved in the crypto space.
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