Binance Denies $2.4 Billion Money Laundering Allegations

June 08, 2022, 10:00 AM AEST - 3 weeks ago

According to a new report by Reuters, US$2.4 billion in stolen funds have been laundered through the cryptocurrency exchange Binance between 2017 and 2021. Binance, however, has vehemently denied the allegations, calling the report a “woefully misinformed op-ed”.

‘Analysis False’, Says Binance CCO

The report was conducted using court records, speaking with law enforcement, and working with monitoring firms Chainalysis and Crystal Blockchain to trace illicit funds moved across the exchange. It quotes Patrick Hillman, Binance chief communications officer, who told Reuters that he believed the analysis was false.

According to Hillman, Binance is in the process of assembling “the most sophisticated cyber forensics team on the planet” that would “further improve our ability to detect illegal crypto activity on our platform”.

In a post, Binance defended itself but Reuters maintains its claims. The charge of a “hub” for illegal activity was due to the possibility of users opening accounts and moving funds on Binance with an email address alone, and Reuters claims that the platform allowed them to operate with little to no “Know Your Customer” requirements until August 2021. During this time, the report alleges there were amounts of money flowing through the exchange from malicious actors.

Binance has previously been under investigation by the US Internal Revenue Service and the Department of Justice in an effort to uncover unreported crypto income from US citizens and other illegal activities on the platform.

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