Binance on Monday said that its AI-powered systems intercepted frauds worth $10.53 billion in just over a year and the crypto exchange invests around $300 million every year in compliance, exceeding what most major banks spend.The world’s biggest bitcoin exchange highlighted in a blog post that as digital assets become increasingly mainstream, Binance focuses on compliance. It is one of the largest investments across the company, underpinning everything from fraud prevention and user protection to law-enforcement collaboration and asset recovery, it said.“While innovation may attract users, trust allows an ecosystem to scale sustainably. Compliance is one of the ways that trust is built – through fraud prevention, asset recovery, law-enforcement collaboration, and ongoing investment in user protection,” Binance said.Crypto TrackerTOP COINS (₹) 149,777 (0.76%)95 (0.2%)95 (0.16%)52,084 (-0.29%)5,607,366 (-0.93%)It added that its $300 million annual investments support the technology, investigations, operations, programs, and people that help safeguard users across the platform. When compared to assets held, Binance allocates roughly 0.22% toward compliance as against 0.14% across the broader financial industry.“Our investment extends beyond direct financial investment alone. Nearly 1,500 professionals – around one in four Binance employees – work in compliance-related functions. Binance invests approximately $50,000 per employee annually in compliance – several times the level typical of large financial institutions,” it added, claiming that this is 8.6 times higher than even the largest global systemically important banks (G-SIBs) who dedicate around 1% to 3% of total employees to compliance functions.Also read: Supply crunch lifts stablecoin premium above 8.5% in IndiaBinance said only about 0.018-0.023% of total Binance transaction volume was linked to illicit addresses, as of June last year, showcasing the impact of its efforts towards compliance. “Cybercrime remains one of the most significant threats facing the digital asset industry. In 2025, Binance assisted in the recovery of approximately $114 million linked to external hacks and security incidents. In 2026 to date, we've already helped recover an additional $60.2 million year-to-date – bringing the total to more than $174 million returned in the face of external attacks. Furthermore, in 2025 we helped recover $8.2 billion in missent assets across 1.28 million user appeals – funds that, on most platforms, would have been lost,” it added.Binance uses AI to protect usersBinance spent more than $3 million in the first five months of 2026 alone in compute on compliance-focused AI – systems built to detect suspicious behavior, surface emerging threats, and improve the speed and accuracy of investigations. The crypto exchange said the results speak of their success as these systems intercepted approximately $10.53 billion in potential fraud, scams, and anomalous activity before harm could occur between 2025 and Q1 2026.“In 2025 alone, Binance handled 72,632 law-enforcement requests from authorities worldwide. As of June 2026, that figure has already reached 36,235 requests, bringing the all-time total to 313,653, while maintaining the safeguards and legal processes that protect users' rights. This collaboration draws on blockchain analysis, cross-platform coordination, and rapid incident response – designed to help victims recover assets and limit criminal activity – and has contributed to successful enforcement actions and asset-recovery efforts across the globe,” Binance said.Earlier this month, Binance tightened the rules for traders and investors in India, now requiring investors to disclose more information for every crypto withdrawal and deposit- transactions that regulators fear may obfuscate money trails."In adherence to local regulatory requirements, Binance will gradually introduce changes to crypto withdrawal and deposit procedures for Indian users," said a Binance update that was issued in the weekend and came into effect from June 22, 2026.Also read: Binance tightens rules for India users, falls in line(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)