An investigation into the financial activities of Binance, the world’s largest Bitcoin and altcoin exchange, reveals that the exchange’s platform helped launder at least $2.35 billion in funds over a five-year period. According to the Reuters report, Binance; Over the past five years he has helped launder money from fraud, hacking, investment fraud, illegal drug sales, and a stock market breach lawsuit, among others. However, Binance’s CEO, CZ, made a statement regarding the allegations.
Does Binance help with money laundering via altcoin Monero (XMR)?
Reuters report details several money laundering cases on crypto exchange. As it is known, Darknet markets laundered $ 839 million. Crypto scams such as Finiko Ponzi fraud, Cyber storm fraud case, Thodex fraud have exceeded $1.29 billion. Funds from the hacks were also delisted several times for its malicious use, with the inflow of illegal funds under Monero (XMR), which focuses on privacy or anonymity, with over $27 million. However, it currently continues to be traded on the platform.
The US government also hired crypto researcher Chainalysis to monitor illegal streams, and Binance’s crime fund totaling $770 million in 2019 alone Another report by Crystal Blockchain showed that a Russian-language site called Hydra used Binance to receive $780 million worth of crypto payments. Reuters also questioned Binance about allowing Monero trading on its platform, despite warnings from law enforcement that Monero poses a money laundering risk.
Binance’s stance on crypto and money laundering
On May 5, Binance published an article titled “Crypto and Money laundering: an inappropriate reality.” Here, the exchange points out that people who are against crypto always think that crypto is worthless or that it is a money laundering scheme. “Unlike cash, which is nearly impossible to trace, Blockchain has proven to be one of the most powerful tools for law enforcement,” the article states.
The exchange platform says that the cryptocurrency is not suitable for money laundering as demonstrated in several cases. He also wrote that the company has spent millions recruiting “the most advanced cyber forensics team.” Binance promises to continue to protect users.
CZ addressed the allegations
CZ has released more than 50 pages of email records between Binance’s cybersecurity team and Reuters that it believes disproves the Reuters report. The news source claimed that the investigation was supported by Blockchain data, court records and law enforcement statements. However, email exchanges suggest that Reuters and Binance were unable to reach an agreement on the allegations.
Bitcoin and altcoin exchange Binance, Reuters journalists Lazarus and Hydra case files He argues that he refused to speak with Tigran Gambaryan and Matt Price, two senior researchers working on the study. Gambaryan and Price now lead the cyber forensics team at Binance. Also, the news source refused to allow Binance to review UID and wallet information related to investment scams. In the case of Monero, Binance believes many tech firms provide encryption on their devices and messaging services because of a legitimate right to privacy. Binance claims to be working with regulators, policymakers and law enforcement agencies to ensure transparent crypto trading and focus on crime prevention.
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