Binance froze assets, tracked blockchain trails, and helped dismantle an international ransom exchange network for cryptocurrency, uncovering a $3.75 million money laundering gang hidden in casinos. #CardanoDebate
Binance neutralizes a cryptocurrency laundering operation hidden in a maze of party casinos.
On June 13, the cryptocurrency trading platform Binance revealed that its financial intelligence unit supported Philippine law enforcement in dismantling an advanced kidnapping-for-ransom operation, which involved laundering $3.75 million through cryptocurrency. Criminals transferred ransom payments through party casino operators before distributing the money through digital asset channels. Binance's collaboration enabled investigators to identify suspects and track illicit money flows on the blockchain. #CardanoDebate
Richard Teng, the CEO of Binance, commented on platform X on June 13, stating:
When cryptocurrency is misused, we act. Our team worked with Philippine authorities to trace a $3.75 million cryptocurrency ransom, identifying suspects and their flows through our intelligence tools.
The Philippine National Police's cybercrime unit faced challenges in tracking multi-layered transactions due to the involvement of private entities managing travel and betting arrangements for high-risk gamblers. These operators acted as intermediaries, helping to obscure the financial trail before the funds reached cryptocurrency wallets. A law enforcement official emphasized the importance of Binance's support, stating: "Ransom funds were distributed to several addresses before eventually reaching cryptocurrency wallets. Binance's quick assistance played a crucial role in helping us move forward with the investigation."
In addition to providing analytics, Binance disrupted the money laundering operation by freezing associated assets. The cryptocurrency trading platform stated:
Our team also froze over $3.5 million in related cryptocurrency assets, disrupting the financial infrastructure of the network. Lin was later arrested and pleaded guilty in a U.S. federal court to conspiracy to distribute drugs, money laundering, and distributing counterfeit drugs.#CardanoDebate
Binance noted that similar efforts contributed to dismantling cybercrime networks in Thailand and Malaysia. While digital currencies pose new challenges for law enforcement globally, cryptocurrency advocates argue that blockchain transparency allows law enforcement to find innovative ways to detect and disrupt illicit funding. #Binance
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