Arguably the largest crypto exchange in the world, Binance has revealed how it played a pivotal role in the arrest of suspected crypto launderers in Ukraine.
The suspected crypto launderers are a criminal gang suspected by security operatives to have laundered at least $42 million through crypto firms in the last two years. Binance exchange had its security team work alongside RegTech firm TRM to identify transactions between Binance and “Bulletproof Exchanger” to identify these criminals.
These Bulletproof Exchangers are crypto platforms that the suspected crypto launderers use to launder money. Firms in this category are usually platforms with relaxed identity checks, they fit perfectly to the requirements of criminals that launder money.
According to the Binance blog post, they invested more resources to checkmate these issues and were left stunned with the result. However, having monitored certain suspicious activities Binance alongside Ukrainian authorities were able to uncover the cybercriminal gang.
Reportedly, the gang was responsible for a ransomware campaign and the laundering of more than $42 million in cryptocurrencies over the last two years.
Arresting the crypto launderers
According to the cyber police department of the National Police of Ukraine, they began working with Binance since early 2020. They explained in another blog post that Binance experts used industry-leading algorithms to analyze and detect transactions potentially related to financial crimes and fraud.
However, the suspected crypto launderers were not arrested until June they revealed. They said further that the criminals laundered money on about 20 online exchanges, and placed advertisements on forums on the dark web.
Upon the arrest of the criminals in the region of Poltava, over $200,000 worth of computer equipment and cash, as well as assault rifles, submachine guns, and ammunition were recovered from them.
The police department further in the statement explained that within the framework of the current legislation, they will continue to cooperate with international security research groups to effectively combat crimes and threats related to the circulation of cryptocurrencies.
Binance stance on crypto illegals
Although Binance’s reputation as regard relationship with authorities is not a good one, now the story is set to change. The firm has played a pivotal role in the arrest of crypto illegals.
In the blog post the firm published, they explained also that they look forward to ensuring customers’ security and to support investigations concerning the safety of the global cryptocurrency ecosystem.
Part of this commitment involves fighting malicious actors and helping victims seek justice, the exchange firm claimed.