Binance salvages $4b in botched crypto deposits

Binance has recovered billions in bungled deposits following its $4.3 billion settlement with the U.S. Department of Justice.

Crypto exchange Binance reported over $4 billion of rescued customer deposits initiated within the last two years as the company looks to improve its operations under new leadership amid a bull cycle. 

The report found 381,616 cases of crypto tokens deposited to the wrong address between 2022 and 2023, with virtual currencies stuck due to project upgrades and sometimes because of incompatible assets.

Binance Chief Security Officer Jimmy Su said similar cases are expected as new users flock into crypto. He explained that securely operating wallets and on-chain addresses is still a pain point for beginners, noting the pattern is a maturing process in crypto. 

Additionally, the report highlights a rise in scams and rug pulls as crypto garners more attention following the approval of spot Bitcoin ETFs. Centralized exchanges recorded the highest spot Bitcoin (BTC) trading volume since FTX collapsed in 2022, and volumes on Binance reached $17 billion on Feb. 28 as crypto.news reported.

Su added that industry leaders must pool resources and support industry stakeholders to guard against bad actors, and continue to nurture the nascent crypto ecosystem as it welcomes new users.