Binance Claims It Prevented $10 Billion in Crypto Fraud and Scams

Key Insights

• Binance says it has helped prevent over $10 billion in fraud using its AI-powered compliance system.
• The exchange also revealed that it spends over $300 million on compliance efforts
• This follow the firm’s withdrawal from European Union due to its MiCA license failure which CZ attributes to political interference.

Binance said its AI-powered compliance systems prevented more than $10.53 billion in potential fraud losses between the beginning of 2025 and the first quarter of 2026. The figures appeared in the exchange’s latest compliance report, which highlighted the scale of its investments in security, artificial intelligence, and regulatory oversight.

According to Binance, those results reflect years of increased spending on compliance infrastructure. The company said it invested more than $3 million in AI computing resources during the first five months of 2026 while maintaining annual compliance spending of roughly $300 million.

Binance Touts Massive Compliance Investments and Achievements

The exchange highlighted its compliance investments and achievements in the blog post which appears to be a reaction to its setback in the European Union.

Binance had failed to secure the Market in Crypto Assets (MiCA) license in Greece, forcing it to shut down operations in the EU ahead of the June 30 deadline.

While reports claim that Binance compliance track record is one of the reasons why European regulators rejected its application, the exchange report claims it has an excellent compliance history.

It noted that compliance is one of its largest investments, with approximately $300 million spent annually. “Relative to assets held, we allocate an estimated 0.22% toward compliance versus roughly 0.14% across the broader financial industry,” the post read.

The crypto exchange added that almost 1,500 of its employees are in compliance roles, which account for one quarter of its employees.  According to Binance, this puts it above the largest banks when it comes to the percentage of employees dedicated to compliance roles.

Meanwhile, the exchange insists that its investments have yielded results, noting the recovery of $174 million linked to external security incidents and hacks since 2025. It has also recovered $8.2 billion in misdirected assets based on 1.28 million user appeals.

CZ Claims Binance MiCA License Refusal is Political

Interestingly, Binance founder Changpeng Zhao has blamed political forces for the exchange’s failure to secure the MiCA license in Greece. While speaking on a podcast, Zhao said the application was fully compliant and near approval before political forces intervened.

He further claimed that Binance even had the option to apply for the license in another EU country, but could not proceed due to the intervention.  Zhao did not name the political force,s but there is speculation that it could be European Central Bank president Christine Lagarde.

Reuters had earlier reported that European regulators were also concerned about Zhao’s influence on Binance and the exchange’s global structure.

Interestingly, Binance, in its post, framed this global structure as an advantage, noting that it supports global law enforcement. The exchange stated that it has handled 313,653 law enforcement requests since its inception.

Despite the setback in the EU, Binance has said it remains committed to the European market and will reapply for a MiCA license there.

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