WhiteBIT freezes over $150M: how the exchange is fighting crypto crime

WhiteBIT, one of the leading centralized crypto exchanges for the European market, announced it successfully intercepted $150M in at-risk cryptocurrency funds in 2024. The market operator solidified its reputation as a key partner in fighting digital crime. 

The European exchange increased its involvement with digital crime prevention. In 2024, WhiteBIT intercepted $150M in funds at risk, acquired through hacks and exploits. 

For the whole of 2024, crypto crime took $2.2B globally, a 21.07% increase from the previous year. Chainalysis noted a total of 303 hacking incidents, up from 282 for the preceding period. Attempts to launder funds through exchanges is seen as one of the risk factors for more transparent and regulated crypto adoption. 

Out of the frozen funds under investigation, WhiteBIT safeguarded $4.8M from high-profile cases involving stolen crypto assets. Centralized exchanges are more willing to freeze funds when suspecting illegal activities, including previous address contamination with mixers or other predetermined criteria. 

WhiteBIT also prepared its platform for increased government regulations for crypto. The exchange aims to secure official licenses and remain a staple for European and Central Asian users.

WhiteBIT secured multiple high-profile hacks

WhiteBIT partnered in securing funds tied to XRP in an investigation involving Ripple’s co-founder Chris Larsen. The market operator also assisted with the Coinspaid attack, by securing the funds and starting the recovery process.

WhiteBIT also followed the tracks of the TAO Holder case, identified by on-chain investigator ZachXBT. The exchange blocked a large sum of USDC, while cooperating with law enforcement. 

In one case, WhiteBIT managed to intercept and return funds linked to an exploit by the North Korean hacking group Lazarus. The hack of the Rain.com exchange took away $16M, of which $760,000 in stolen SOL were tracked to WhiteBIT. In September, WhiteBIT managed to return the funds under custody of the FBI, taking another step into the recovery process. 

WhiteBIT steps up AML practices

WhiteBIT remains open to communication and compliance with law enforcement, whenever a threat or stolen funds are discovered. The exchange aims to set itself apart from markets that deliberately avoid AML practices and serve as an off-ramp for hackers. 

“Our approach goes beyond standard AML practices,” said a representative from WhiteBIT’s Compliance department. “We leverage OSINT (Open-Source Intelligence) to uncover suspicious activities meticulously, utilize custom-built monitoring systems to detect and halt fraudulent transactions, and conduct manual investigations to ensure detailed and accurate assessments of flagged cases.”

WhiteBIT warned users on some of the most common types of scams, mixing both technical and social attack vectors. More than 40% of hacking attempts include technical means, including phishing, malware, keyloggers, and direct account hacking. Another 40% of scams include disguised attempts to gain access to a wallet for seemingly legitimate purposes. Some of the scams include Telegram-based earnings promises, where users initially make small investments, but eventually deposits are not paid back. 

WhiteBIT has also encountered attempts to scam users with copycat sites and account login pages. Compromised accounts without 2FA also increase the risk of losses. The exchange protects user funds by storing 96% of deposits in cold wallets, enforcing 2FA and securing private keys with additional passwords. WhiteBIT has been certified for penetration testing, user security and bug bounty, leading to its high score from CER. 

The WhiteBIT exchange achieved CCSS Level 3 certification with Hacken, covering the highest security standard for the crypto industry. The market operator aims to remain at the forefront of crypto security, with both passive and active engagement with threats. The recent bull cycle increased the raw number of attacks, while also unleashing more sophisticated vectors. WhiteBIT aims to remain a benchmark for safety under those changing conditions.

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