The Largest Crypto Exchange Binance Is Tracking Down Drug Cartels Used The Platform

According to Forbes, between $15 million and $40 million has been laundered via the world's biggest cryptocurrency exchange, citing a search order acquired.

Binance, which revealed intentions earlier this year to acquire a minority investment in Forbes, is collaborating with the police to assist in the identification of suspects.

According to Forbes, the inquiry into the cartel's usage of Binance started in 2020, when DEA agents on another crypto trading site discovered a user providing bitcoin in return for fiat cash.

The DEA apprehended one suspect, Carlos Fong Echavarria, who eventually pled guilty to money laundering and narcotics selling charges. Binance supported the government by monitoring Echavarria's blockchain trading activities, which reached $4.7 million. According to the warrant, they were able to uncover an additional account receiving cash from Echavarria by monitoring on-chain activities.

Another account user, who has not been officially accused, reportedly purchased approximately $42 million in cryptocurrency, at least $16 million of which came from drug money.

“This is an example of how the openness of blockchain transactions works against illegal actors,” said Matthew Price, Binance's senior director of investigations. “The wicked people leave a lasting record of their actions.”

Binance also assisted the DEA earlier this year in its endeavor to confiscate over 100 accounts linked to money laundering in Mexico.

Meanwhile, Binance is apparently under investigation by the US Department of Justice, according to Reuters, citing four persons familiar with the situation. According to the study, the company's finances were like a “black box,” and not even Binance's former chief financial officer had complete access to accounts throughout his almost three-year employment.

Binance's chief strategy officer told Reuters that the report's research and portrayals of its business groups were “categorically wrong.”

Stay tuned for more news.

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