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Binance & Ukraine Came Together to Seize Crypto Laundering Activities

Binance seems to take charges of exposing criminals involved in legalizing the illegal bread via the darknet. Criminals holding funds of around $42 million were arrested by exchange’s cooperation with Ukrainian police.

Binance, the major cryptocurrency exchange together with Ukraine cyber authorities caught an unnamed criminal group involved in crypto money laundering activities including ransomware of worth $42 million.

According to a press release published by Cyberpolice Department of the National Police of Ukraine on Aug 18, the internal data security/ risk intelligence team of Binance supported Ukrainian cyber staff to search and arrest the alleged ring participated in the delinquency set-up which involved activities of huge money concealment and illicit ransomware mission via the darknet network route.

As per the information, the group was performing illegal operations from the past 2 years that were arrested in June 2020.

Source: Official website Cyber Police of Ukraine

The perpetrators from the Poltava region had set up around 20 online money exchangers and offered services like money laundering schemes to the users through advertising on the darknet network. For example, “money received from hacker attacks on international companies, distribution of malicious software, theft of funds from the bank accounts of foreign companies and individuals.

Binance and Ukrain Police Combating Criminal Offenses

Binance expert team from Sentry division deployed the industry-leading algorithms with the aid of TRM Labs (East Coast, Southern US-based Cryptocurrency Compliance & Risk Management & blockchain analytics firm) to study and detect the transactions connected to financial crimes and fraud.

The release reads that while the partial pre-trial investigation of the case is going on, the three illicit crypto actors would face up to eight years in prison.

The Department Chief Oleksandr Hrynchak said that “Because the digital currency market has a large number of financial transactions with money obtained from hacker attacks on international companies, the spread of malicious software, theft of funds from the bank accounts of foreign companies and individuals – the Department of Cyberpolice with Binance and its methodological assistance, promotes more prompt detection of those involved in such offenses.”

Further, it is mentioned that Cyberpolice and Binance would further try to combat such more illegal groups and activities with the help of international security research groups to effectively expose such crimes and threats related to cryptocurrencies.

Interestingly, according to the cryptocurrency analytics & blockchain surveillance company Chainalysis, Binance and Huobi are the prominent crypto exchanges that received the most illicit transactions in 2019.

Source: Chainalysis

Chainalysis 2020 Crypto Crime Report shows that out of all 52% illegal Bitcoin (BTC) transfers, Binance is having almost half of the numbers which is approximately 27% of total illegal $2.8B BTC in 2019. The report published on January 15, 2020