Home Cryptocurrency $42M Crypto Laundering Ring Busted: Binance Aided Police Secretly

$42M Crypto Laundering Ring Busted: Binance Aided Police Secretly

Binance, a most popular name in the cryptocurrency market has revealed a secret security project that has helped the Ukrainian cyber police this year to take down a criminal gang. The gang has allegedly laundered $42 million via cryptocurrency exchanges in the last two years, the authorities state. The security team of Binance had worked conjointly with the RegTech firm TRM in the bid to identify the transactions taken place between the Bulletproof Exchanger and Binance. These exchanges are considered to be the exchanges with relaxed identity checks and to the point for the cybercriminals to conduct crypto laundering.

At the beginning of this year, Binance has allocated the additional resources for looking into the issue, as stated by a blog post lately. They were surprised to unearth what they found. Binance had worked with the cyber police of Ukraine by just tugging the end of a thread belonging to a suspicious activity that has exposed a cybercriminal organization that is believed to be responsible for a ransomware campaign and the crypto laundering of over $42 million over the last two years.

Back in June, three arrests were conducted. The suspects were apprehended by the cyber police in the region of Poltava. They have also uncovered over $200,000 worth of cash and computer equipment along with sub-machines, assault rifles and ammunition. During this time, the cyber police had written that the criminals conducted crypto laundering of nearly 20 online cryptocurrency exchanges and had placed advertisements on various dark web forums. It has also been stated that if the accused group has been convicted, they will surely face up to eight years of imprisonment.

crypto-laundering-ministry-of-digital-transformation-ukraine
Image: 112 International

It is now that the involvement of Binance in the bust of the crypto laundering ring has been disclosed. Binance has been known to be “once reputed to evade the authority”, is currently playing a much bigger role than ever. Back in November 2019, it had signed a memorandum of understanding with the Ministry of Digital Transformation of Ukraine. The memorandum stated that Binance would aid the Ukrainian government to create transparent and effective mechanisms for trading cryptocurrencies alongside beneficial conditions for investments and business.

In a press release, the crypto exchange Binance wrote about the crypto laundering scoop:

“For the health and sustainability of the entire industry, it is important to identify and help bring to justice those who abuse cryptocurrency and negatively affect the industry and its reputation.”

Source: Decrypt


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Aadvik Perry
Aadvik Perry covers law enforcement and crimes from San Francisco for The New York Times. Before joining The Times he was a reporter at The Los Angeles Times and The Forward. Aadvik is one of the top contributors of Dark Web Links.

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