Binance crypto exchange in a blog post on Tuesday revealed how they helped Ukrainian police to crack down a crypto laundry ring. Allegedly, the crypto ring already laundered $42 million through crypto exchanges over the past two years.
However, towards bursting the crypto launderers, Binance had their security teamwork alongside RegTech firm TRM to identify transactions between Binance and “Bulletproof Exchanger.”
These Exchanger crypto platforms usually serve as cash-out points for cryptocurrency operations connected to financial crimes and other fraud. In most cases, the exchangers are usually platforms with relaxed identity checks. They fit perfectly to requirements of criminals that launder money.
In the blog post, Binance revealed that they invested more resources to look into the issue of these Bulletproof Exchanger. The result left them amused, the blog post revealed.
Afterwards, when the exchange firm was furious about certain activities on the platform, they (Binance) alongside Ukrainian police unravelled “a cybercriminal organization.
This organization was responsible for a ransomware campaign. Also, they laundered more than $42 million in cryptocurrencies over the last two years.
Arresting the crypto laundry ring
Binance and Ukraine cyber police began working together since early in the year. According to the police, Binance experts used industry-leading algorithms to analyze and detect transactions potentially related to financial crimes and fraud.
With the investigation with both parties since early in the year, three arrests were made in June. The suspects were apprehended around Poltava. They were nabbed with over $200,000 worth of computer equipment and cash, They also had assault rifles, submachine guns and ammunition.
The cyber police also published in June that the criminals laundered money on about 20 online exchanges, and placed advertisements on forums on the dark web. If they get convicted, they face not lesser than eight years in prison.
However, Binance made their involvement in the burst operation know on Tuesday.
Exchange firms aiding operations of security authorities
Amidst all exchange firms known, the last anyone would have expected to aid operations of security operatives was Binance. The firm was known to evade authority with headquarter and government sanction issues that follow.
Binance now is playing a pivotal role signing a memorandum of understanding with the Ministry of Digital Transformation of Ukraine. The MOU has helped the Ukraine government create “transparent and effective mechanisms” for crypto trading and “beneficial conditions for investments and business.”
In the same light, the partnership between both institutions leads to the arrest of these crypto launderers in the country. Similar to Binance, in Korea, certain exchange firms also helped authorities in the investigation.
The NTH room involved blackmailing and spreading of sexually exploitative videos via the Telegram app. Suspects allegedly were paying cryptocurrencies to access digital prints of rape videos and sexual exploitation of minors.
Police in the country had to raid crypto exchanges to get information regarding this payment. Bithumb and Coinone are exchange firms that worked alongside the police to reveal those behind the child porn scandal.