Binance cuts direct exposure to illicit crypto funds by 96% since 2023

However, the world’s largest cryptocurrency exchange **Binance (the most recent example of a major decline in its direct exposure to illicit crypto activity) reported that global trading volumes and user engagement surged last year as it experienced an increase in worldwide use for bitcoin. ** **

The exchange, according to its report in its “State of the Blockchain 2025” statement, had reduced its direct exposure to large classes of black money by 96% since 2023. Today, its compliance and related teams account for nearly a quarter of its workforce.

In addition to compliance, Binance grew into key markets with $34 trillion in annual trading volume and became the first global crypto platform fully authorized under Abu Dhabi Global Market’s rules.

The numbers are a crypto crime spike in 2025, as new data released by Chainalysis shows that nation-state activity and sanctions evasion have been surging. During the year, at least $154 billion was paid to illicit cryptocurrency addresses over that year — 162 percent of which is an increase on year-on-year and the highest total ever recorded. If no sanctioned entity activities were expanded, 2025 would have surpassed previous records; increases were seen across nearly all major illicit categories.

Binance helped authorities seize approximately $131 million in 2025

In 2025, Binance helped authorities recover about $131 million related to illegal activity and processed more than 71,000 formal requests. Over 160 training sessions were also provided by the platform to train police with the ability to tackle illegal activity in digital assets.

In early 2023 and mid-2025, the exchange significantly reduced its direct exposure to illicit activity; it continues processing volume comparable with that of all the six other top exchanges. Most of the transaction that Binance processed was essentially legitimate; only a few transactions were connected to illegal activity.

The exchange’s risk and control systems blitzed $6 last year, as well as the trade’. scam losses for 5 69 billion in possible scams, . It has a total of 4 million users, and helped over 50,000 recover $11 from ‘s original usage. 7 million . SB Seker, head of APAC at Binance said ‘It was about 2025 that we were working on the most effective results in this case including stopping $6.” 69 billion in possible fraud, strengthening market integrity and supporting greater institutional participation. ” , ‘I’m sure it is worth reading.

The exchange also adopted more phishing simulations in 2025, successfully lowering its phishing failure rate from 3.2% to 0.4%.

Furthermore, its Compliance group simplified its Enhanced Due Diligence (EDD) process in 28 days’ sprint, cutting RFIs by more than 60% from 14 to 4, and increasing first-time pass rates as well as general approval of the same period nearly half.

Binance has over 300 million users globally

The site accounted for $7 last year, according to . In spot trading, 1 trillion (18 percent rise) in daily average volumes (14% increase), plus more than 300 million users worldwide and pushed the world’s all-time trading volume to $145 trillion. The spot markets of the exchange include 490 coins and 1,889 trading pairs, while futures trading includes 584 coins. smartmoney) – one of its features, also attracted 1. Demo trading tools reached 300,000 users with 2 million users and a demo trading tool of 3 million.

The platform also saw a 21% increase in institutional volumes and 710% rise in over-the-counter fiat trading, with tokenized funds becoming increasingly used as collateral for the use of institutions.

Similarly, Binance reported wider adoption of P2P and fiat volumes up 38%. Those who use Binance Pay increased by 30% over 20 million merchants accepted cryptocurrency, $1. Binance Earner 2 billion 2bn. Binance Alpha 2, a multi-million-dollar , has more than $1 trillion in volume. It attracted 17 million people and closed down 270,000 scam accounts during airdrop events, with 0 closing down two70,000 fake accounts for the use of .

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