Binance Named Platform Counterparty in Illegal Funds Case

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Last Updated on January 20, 2023 by Bitfinsider

Binance Holdings Ltd., the world’s largest cryptocurrency exchange, has been identified as one of the primary counterparties of digital-asset platform Bitzlato, which has been accused of processing millions of dollars in unlawful money.

Binance “offered extensive assistance to foreign law enforcement partners in support of this investigation,” according to a Binance spokeswoman. “This demonstrates Binance’s commitment to collaborating with law enforcement partners around the world,” the representative continued.

In an order, the Department of the Treasury’s Financial Crimes Enforcement Network stated that “roughly two-thirds of Bitzlato’s top receiving and sending counterparties are linked with darknet markets or scams.”

According to the statement, Binance was declared the top receiving counterparty by total quantity of Bitcoin between May 2018 and September 2022. Hydra, a Russia-connected dark net web market, and TheFiniko, a Russia-based scheme, were ranked second and third, respectively.

According to the Treasury Department paper, the top three sending counterparties over the same period were Hydra, Local Bitcoins in Finland, and TheFiniko.

According to the Treasury Department paper, Bitzlato, a Hong Kong registered corporation, has “strong ties to and connections with Russia,” and is a “financial institution of main money laundering concern in connection with Russian illicit finance.”

According to a Justice Department statement, Bitzlato processed unlawful transactions, including millions of dollars in ransomware earnings.


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