Binance recovered $4.4 billion in digital assets for users due to deposit errors.
Binance has successfully recovered $4.4 billion worth of digital assets for users who made deposit errors over the past two years.
Funds may be mishandled for a variety of reasons, including entering an incorrect wallet address, depositing incompatible tokens, or issues arising from blockchain updates.
Recovery of incorrectly processed deposits
In 2022 and 2023, Binance resolved 381,616 cases where users deposited cryptocurrency assets that were not deposited into their accounts. Binance stated this week:
“To foster the growth of the ecosystem while it is still in its infancy, industry leaders like Binance must leverage their influence and resources to support other players in emerging markets, protect users, and maintain the integrity of the space.”
Binance Chief Security Officer Jimmy Su has previously said mishandling of funds is likely to continue, especially as newcomers enter the market. The executive added:
“This is part of the industry’s maturation process. “Most beginners will have a lot of trouble operating their wallets safely.”
Now, Binance’s latest actions have significant implications, especially considering recent developments. Judge Richard Jones of the U.S. District Court for the Western District of Washington approved the company’s $4.3 billion plea agreement with the U.S. Department of Justice (DOJ).
The DOJ announced the settlement in November, accusing Binance of violating sanctions and anti-money laundering regulations over several years. Under the settlement, Binance will pay $4.3 billion, conduct independent compliance monitoring, and then-CEO and founder CZ will resign.
CZ pleaded guilty to money laundering and was released on $175 million bail. As part of the settlement, the executive paid a $50 million fine and has remained in the United States since then, barred from returning to his Dubai residence.
Nigeria’s Crisis
Amid significant regulatory hurdles in multiple jurisdictions, Binance faced turmoil in Nigeria as authorities detained at least two employees as part of an investigation into market manipulation. This was confirmed by the Office of the National Security Adviser (ONSA).
Meanwhile, Binance has discontinued the Nigerian currency, naira, from its peer-to-peer (P2P) services. This comes a week after Presidential Adviser Bayo Onanuga alleged that cryptocurrency exchanges were manipulating Nigeria’s fiat currency, exacerbating the depreciation in the foreign exchange market. These claims have surfaced amid rumors that the government is considering a ban.
Binance later refuted these accusations.
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