Binance unknowingly processed billions in illicit transactions, according to a report from Reuters. Transactions included illegal drug sales, hacks, and investment fraud totalling $2.35 billion In a statement to Insider, a spokesperson for the exchange strongly refuted the claims made in the report. Loading Something is loading.
Cryptocurrency exchange Binance processed billions in illicit transactions, according to a report from Reuters.
Transactions totaling $2.35 billion stemming from drug sales, hacks and investment fraud made their way through the exchange without the company knowing about it, Reuters said. A spokesperson for Binance said the processing totals were calculated using old data.
“Binance has some of the strictest AML policies in the fintech industry and plays a significant leadership role in helping law enforcement deal with cyber and financial crime,” A spokesperson for Binance said. “We continue to receive overwhelming support from partners in law enforcement across the globe for our pioneering work to fight money-laundering.”
But Reuters says Binance’s security and anti-money laundering stopgaps are anything but secure. Senior Binance executives cited concerns themselves until new security measures were rolled out in 2021.
The report adds that the North Korean hacking group Lazarus used Binance to launder $5.4 million worth of cryptocurrencies stolen from a Slovakian exchange. The hackers created Binance accounts within minutes to trade the stolen crypto.
Reuters notes it examined specific cryptos that passed through wallets before hitting Binance’s exchange and data from Crystal Blockchain going back to 2017.
Binance services roughly 120 million users around the globe amounting to hundreds of billions in cryptocurrency transactions per month. Binance has extended its reach into more traditional market ventures, with the company sinking $200 million into a stake in Forbes and contributing $500 million to Elon Musk’s Twitter bid.
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