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Binance: A Borderless Exchange Leading the Way in Supporting Law Enforcement and Security!! Cryptocurrency exchanges are online platforms that allow users to buy and sell cryptocurrencies. These exchanges typically operate as centralized or decentralized structures. Centralized exchanges act as an intermediary to facilitate transactions, while decentralized exchanges allow users to trade directly with each other.
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Law enforcement and regulatory agencies closely monitor cryptocurrency exchanges for various reasons, primarily to combat money laundering (AML). Binance, the most trusted and largest exchange by volume globally, works with law enforcement to prevent criminal activity. This cooperation typically involves reporting suspicious transactions, freezing accounts involved in illegal activities, and sharing necessary information during investigations.
Year-End Report Shows Success
According to Chainalysis’ 2024 crime report, the total cryptocurrency transaction volume associated with illicit activity decreased from 0.42% in 2023 to 0.34%. Binance’s leadership in law enforcement cooperation in the industry did not go unnoticed in this success. Binance’s 2023 year-end review report supports the success of this leadership. The report states that they supported/processed more than 58,000 law enforcement requests.
Global Law Enforcement Training Program
In 2022, Binance launched the Global Law Enforcement Training Program, a first in the cryptocurrency industry. This program aims to assist law enforcement in detecting and combating financial and cybercrime more effectively. With the support of the Binance Investigation Team, the Binance Law Enforcement Training Team organized 120 different trainings and workshops for law enforcement around the world in 2023. These trainings took place in various countries, including Ukraine, Taiwan, South Korea, Hong Kong, Australia, and Kazakhstan, both in-person and online formats.
Binance is a user-centric cryptocurrency exchange that prioritizes the security of its users. This industry-leading platform goes beyond the standard by taking various measures to increase the security of the blockchain ecosystem. In this context, it works closely with law enforcement and regulatory agencies worldwide to detect and prevent malicious attempts.
Every year, around $2 trillion in cash, equivalent to about 5% of global GDP, is laundered through banks and other traditional financial institutions. Ensuring and protecting public trust is crucial for platforms that law enforcement works with. Binance Exchange is more than fulfilling its responsibility.
Binance Supports $500 Million Ransomware Money Laundering Operation!
Recently, the Binance Security team participated in an international operation to combat a gang known as FANCYCAT, which carried out extensive cybercrimes. This operation was conducted in collaboration with the Ukrainian Cyber Police, the Korean National Police Cyber Bureau, the US Secret Service, the Spanish Civil Guard, and the Swiss Federal Police Department.
This group caused over $500 million in damages and millions of dollars in additional losses due to ransomware and other cybercriminal activities.
Binance took a two-pronged approach to the “FANCYCAT” investigation. The AML detection and analysis program detected suspicious activity on Binance.com and expanded the suspicious cluster.
After mapping the entire Binance suspicious network, Binance worked with private sector blockchain analysis companies TRM Labs and Crystal (BitFury) to analyze on-chain activity and better understand this group and its attributes. The analyzes revealed that this specific group was associated not only with laundering Cl0p attack funds but also with Petya and other illicit funds.
These accurate detections played a significant role in identifying and eventually arresting FANCYCAT.
Collaboration with Law Enforcement and Other Concrete Steps Taken:
Binance’s security and research teams have made significant achievements in disabling international criminal organizations, responding to major cyberattacks, solving crimes against individuals, and combating online fraud.
In 2023, Binance supported the US Federal Bureau of Investigation (FBI) and the Department of Justice (DOJ) in a major case. The Binance Investigation team quickly identified and restricted the flow of illegal funds through the platform, which directly contributed to the recovery of funds lost by victims, and approximately $112 million in funds was seized.
In another significant case, Binance collaborated with the Cyber Crime Investigation Bureau (CCIB). The Royal Thai Police and US Homeland Security (HSI) provided intelligence that enabled them to seize assets worth approximately 10 billion THB ($277 million) to dismantle a criminal group that affected thousands of victims in Thailand.
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