Binance CEO Changpeng Zhao, commonly known as CZ, recounted an incident on X (formerly Twitter) where the cryptocurrency exchange successfully halted stolen funds on Friday. CZ clarified the authenticity of the occurrence, detailing that executives from a Binance client had been kidnapped during a business trip in Montenegro. Forced to empty their crypto wallets, the executives incurred a total loss of approximately $12.5 million.
According to Zhao, Binance conducted a thorough investigation into the on-chain activities of the crypto transactions and collaborated with its partners to freeze the wallet containing the pilfered funds. He disclosed that the entire sum was in tether (USDT) and had been transferred to a Tron wallet. CZ asserted that Binance successfully froze around $11.8 million, equivalent to 94.4 per cent of the stolen $12.5 million.
As reported by Bitcoin.com, responding to inquiries on X regarding the comparability of crypto and fiat currencies stored in banks, CZ stated, "It's a balance, and there is no perfect balance point." He noted the choice available to users, highlighting that while cryptocurrencies like Monero (XMR) offer greater privacy, Bitcoin, though traceable, cannot be frozen until it reaches a centralised exchange (CEX). CZ emphasised, "The key point is, you have the choice."
On the following day, Binance Customer Support outlined the exchange's standard procedure for handling stolen funds received by Binance on X. The post explained, "Depending on the information provided, Binance may grant a temporary courtesy freeze of any allegedly stolen assets." To sustain the freeze, individuals must furnish a police report within 7 days of contacting Binance Support, with the possibility of an extension on a case-by-case basis.
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