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Reuters Accuses Binance of Facilitating the Laundering of $2.4 Billion Since 2017

In a recently published report, Reuters has accused Binance, the world’s largest cryptocurrency exchange, of facilitating the movement of at least $2.35 billion in illicit funds between 2017 and 2021. 

Binance Facilitating Money Laundering

According to reporters for Reuters, who analyzed records, spoke with law enforcement, and worked with blockchain analysis firms Chainalysis and Crystal Blockchain, the movement of illicit funds has been tracked through the exchange.

The Reuters analysis outlines that a portion of the $5.4 million stolen from the Slovakian cryptocurrency exchange Eterbase by the infamous hacking group Lazarus, was processed through Binance. 

They were also able to identify part of the $622 million stolen from the Ronin sidechain in March 2022 that was similarly processed through Binance. 

The news outlet alleges that Hydra, the Russian language darknet space, used Binance to process drug payments totalling $780 million.  

In total, the news agency brought evidence to light that Binance has processed more than $2.35 billion in stolen funds between 2017 and 2021. According to Reuters, the minimal identity requirements for using Binance made the exchange an easy target through which to launder money.

On The Flipside

  • Binance has refuted the claims made in the Reuters article, stating that cryptocurrency is not a safe haven for hackers, scammers, or drug dealers.
  • Binance also reported that it has identified and frozen more than $5 million in connection to the Ronin sidechain hack.

Why You Should Care

Binance is already the object of several U.S. federal investigations, and the accusations could mount the regulatory pressure building on the exchange.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Milko Trajcevski has been in the crypto world for years, and as such has gathered both a skill for writing as well as a native prowess when it comes to understanding everything that occurs within that world. Through skilled writing and determination, he covers articles about cryptocurrency, tokens, blockchain, crypto-asset regulations, crypto wallets, exchanges, liquidity, DApps, forks, mining, security, and blockchain technologies. He is a professional with a track record of proven expertise within the crypto space.