Binance lashes back at Reuters; denies all allegations
Reuters accused that Binance is a safe-house for hackers, scammers, and drug traffickers have been debunked by the Binance team.
- Jun 7, 2022,
- Updated Jun 7, 2022 1:03 PM IST
The world’s largest crypto exchange by volume, Binance, has refuted the Reuters article alleging that the crypto exchange is a safe-house for hackers, scammers, and drug dealers and has helped such illegal elements to launder $2.5 billion between 2017 and 2022.
Responding to Reuters' accusations, the Binance team has stated that cryptocurrencies are not a haven for money laundering, as many people believe.
The Binance team went on to say on their official blog that only 0.15 per cent of all cryptocurrency transactions in 2021 were linked to illicit activities. They further added, in comparison, in the same year of 2021, between 2 per cent and 5 per cent of traditional fiat, worth around $800 billion to $2 trillion, was linked to some form of criminal activity.
The Binance team went on to say that the Reuters journalist who made the assertions doesn't understand how on-chain data works.
The blog post read, “Recently, a journalist reached out and claimed to have evidence that Binance enabled the laundering of some $2.5 billion between 2017 and 2022.
However, it’s clear that this journalist simply doesn’t understand the data or how blockchain works. ”
Furthermore, the Binance team's response to the allegations emphasised that blockchain transactions are among the easiest to track and do not usually work in the favour of people involved in illegal activities.
They said, “Unlike cash, which is nearly impossible to track, Blockchain has proven to be one of the most powerful tools for law enforcement. The immutable, public nature of the blockchain makes crypto a poor choice for money laundering because it allows law enforcement to uncover and trace money laundering far easier than cash transactions.”
Reuters published a report on Monday claiming that Binance is the safe house for hackers, fraudsters, and drug traffickers looking to launder their illicit funds.
The report said, the infamous North Korean organisation Lazarus used Binance in September 2020 after a successful hack of a tiny Slovakian crypto exchange. Moreover, they also claim that Binance received more than $770 million in illicit cash in 2019.
Furthermore, the report stresses that Binance continued to employ poor money-laundering checks on its users until mid-2021, despite warnings raised by senior business leaders for three years.
The world’s largest crypto exchange by volume, Binance, has refuted the Reuters article alleging that the crypto exchange is a safe-house for hackers, scammers, and drug dealers and has helped such illegal elements to launder $2.5 billion between 2017 and 2022.
Responding to Reuters' accusations, the Binance team has stated that cryptocurrencies are not a haven for money laundering, as many people believe.
The Binance team went on to say on their official blog that only 0.15 per cent of all cryptocurrency transactions in 2021 were linked to illicit activities. They further added, in comparison, in the same year of 2021, between 2 per cent and 5 per cent of traditional fiat, worth around $800 billion to $2 trillion, was linked to some form of criminal activity.
The Binance team went on to say that the Reuters journalist who made the assertions doesn't understand how on-chain data works.
The blog post read, “Recently, a journalist reached out and claimed to have evidence that Binance enabled the laundering of some $2.5 billion between 2017 and 2022.
However, it’s clear that this journalist simply doesn’t understand the data or how blockchain works. ”
Furthermore, the Binance team's response to the allegations emphasised that blockchain transactions are among the easiest to track and do not usually work in the favour of people involved in illegal activities.
They said, “Unlike cash, which is nearly impossible to track, Blockchain has proven to be one of the most powerful tools for law enforcement. The immutable, public nature of the blockchain makes crypto a poor choice for money laundering because it allows law enforcement to uncover and trace money laundering far easier than cash transactions.”
Reuters published a report on Monday claiming that Binance is the safe house for hackers, fraudsters, and drug traffickers looking to launder their illicit funds.
The report said, the infamous North Korean organisation Lazarus used Binance in September 2020 after a successful hack of a tiny Slovakian crypto exchange. Moreover, they also claim that Binance received more than $770 million in illicit cash in 2019.
Furthermore, the report stresses that Binance continued to employ poor money-laundering checks on its users until mid-2021, despite warnings raised by senior business leaders for three years.