The Binance team has refuted claims by Reuters that the crypto exchange is a hub for hackers, fraudsters, and drug traffickers.
Binance states that it is at the forefront of the fight against global money laundering.
The team at the exchange also added that crypto transactions are very traceable, and only 0.15% were associated with some type of illicit activity in 2021.
The team at the crypto exchange of Binance has debunked a report by Reuters that claims that the crypto exchange is a hub for hackers, fraudsters, and drug traffickers. Furthermore, the Reuters report claims that Binance was used to launder roughly $2.5 billion between 2017 and 2022.
Binance Explains Crypto is Not a Money-Laundering Paradise
In response to the claims by Reuters, the team at Binance has highlighted that crypto is not a money-laundering paradise as assumed by many. The Binance team further explained that of all crypto transactions made in 2021, only 0.15% were associated with some type of illicit activity.
In comparison, between 2% to 5% of traditional fiat, worth roughly $800 billion to $2 trillion, has been associated with some type of illicit activity in the same year of 2021.
The Binance team added that the Reuters journalist making the claims does not understand on-chain data. They said:
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 nor how blockchain works.
Crypto Transactions are Very Traceable, a Bad Choice for Criminals
In addition, the response by the team at Binance reiterated that blockchain transactions are one of the easiest to trace and do not usually work in favor of criminals. They explained:
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.
More on the Claims by Reuters that Binance is the Prefered Platform for Criminals.
As earlier mentioned, Reuters has released a report that claims that Binance is the preferred destination for hackers, fraudsters, and drug traffickers who intend to launder their ill-gotten wealth.
According to Reuters, Binance was used in September 2020 by the infamous North Korean group of Lazarus after a successful hack of a small Slovakian crypto exchange. The report by Reuters goes on to state that Binance received over $770 million of illicit funds in 2019 alone.
Additionally, Reuters claims that ‘Binance kept weak money-laundering checks on its users until mid-2021, despite concerns raised by senior company figures starting at least three years earlier.’