Money Laundering Using Binance And Other Troubles Of the Exchange. What Is Going On?
Recently, a Reuters article appeared on the Web that through the exchange in the period from 2017 to 2021, various attackers were able to wash more than $2 billion.
Journalists noted that during the indicated period, using the platform, the participants of the Hydra darknet marketplace, hackers of the Lazarus group and other illegal figures laundered stolen cryptocurrency.
For example, in 2020, literally a few hours after the Eterbase hacking, hackers created at least 20 anonymous Binance accounts through which they were able to withdraw stolen funds.
In defense of the exchange, journalists noted that the amount of illegal activity on the platform was sharply reduced after Binance tightened the rules for checking customers in August 2021.
In response to the article, the exchange repeatedly published on Twitter a message that, contrary to the existing opinion, cryptocurrency is not the main method of laundering money from attackers.
The press service of the exchange noted that it is much easier to wash money through the banking system, since in the blockchain you can easily track transactions. The company also announced cooperation with law enforcement agencies and the successful suppression of some attempts to wash stolen assets through the exchange.
For example, Binance recalled that after hacking Ronin, most of the stolen cryptocurrencies passed through the Tornado Cash Ethereum Mixer and were on many exchanges. But in cooperation with law enforcement officers and analysts, Binance froze assets related to hacking about $ 5.8 million.
In addition, the exchange published about half a hundred pages of correspondence with Reuters, and CEO Binance Chanpen Zhao said that these media representatives are “journalists who mislead and waste time.”
It would seem that the scandal will settle down, like any other informational hype around a major player in the cryptocurrency business. But it was not there.
Literally the day after the scandal, the Bloomberg news agency, citing sources, reported that the US Securities and Exchange Commission (SEC) began an investigation of Binance’s BNB token at the time of sale in 2017.
At the time of writing, there is no specific information about the investigation. However, the SEC noted that there are grounds for such an investigation, and it can last several months. And representatives of the exchange refused to somehow comment on the situation, noting only that they would provide the necessary information requested by the investigation.