The collaboration between Binance and the law enforcement team in Ukraine, busted criminals laundering $42 million through exchanges over the past two years.
Binance has revealed a secret security project that this year helped Ukrainian cyber police take down a criminal gang that authorities allege laundered $42 million through cryptocurrency exchanges. https://t.co/R0sdI1dkMg pic.twitter.com/gUY5Wk7NN6— Decrypt Media (@decryptmedia) August 19, 2020
As the world’s largest cryptocurrency exchange, Binance has given its full attention to matters concerning customer’s security and safety. This commitment pushed the company to extend its support to authorities fighting malicious actors and helping victims seeking justice in the global cryptocurrency ecosystem.
The Ukrainian authorities have identified and arrested these criminals in June 2020, but it was just recently revealed Binance's actual involvement in tracking down this wanted group of Ukrainian nationals based in Poltava for large-scale money laundering scheme since 2018. Ukraine’s cyber police, during a raid at the group’s offices and residences, recovered computer equipment, and cash which approximately worth more than $200,000 alongside weapons.
Based on the details gathered by Hackread, the group has been offering money laundering services of cryptocurrencies through underground forums which are a hotspot for criminals. This enables them to make a large sum of money from various illegal activities including but not limited to - spreading malware, hacking international firms, stealing money from foreign individuals, and company bank accounts. These criminals face 8 years in prison if convicted with the charges filed on them.
Catching a cybercrime group behind a $42 million laundering operation.https://t.co/B3PyDZX6pG— Binance (@binance) August 18, 2020
This is not the first time Binance was involved in a similar investigation. Cointelegraph reported that in September 2019, Binance helped the British prosecutors investigate an online fraud that caused losses to victims around $51 million. Binance told Decrypt that their security team worked with blockchain fraud analysis firm TRM to identify transactions made between Binance and the so-called Bulletproof Exchanger, exchanges with relaxed identity checks perfect for criminals laundering money. The team consolidates database composed of data from users, lawn enforcement agencies, the blockchain, and an open-source intelligence to assist them in this successful criminal investigation.