#بينانس Binance freezes $3.5 million in cryptocurrency after the collapse of the ransom demand trail on the blockchain
Binance froze assets, traced blockchain trails, and helped dismantle an international network exchanging ransom for cryptocurrency, where a $3.75 million money laundering gang was hidden in casinos. #CardanoDebats
Binance neutralizes a cryptocurrency money laundering hub hidden in a maze of party casinos.
On June 13, Binance revealed that its financial intelligence unit supported Philippine law enforcement in dismantling an advanced ransom kidnapping operation, which involved laundering $3.75 million through cryptocurrency. The criminals transferred ransom payments through party casino operators before distributing the funds through digital asset channels. Binance's collaboration enabled investigators to identify suspects and trace illicit money flows on the blockchain. #CardanoDebate
Richard Teng, CEO of Binance, commented on social media platform X on June 13, saying:
When cryptocurrencies are misused, we take action. Our team worked with Philippine authorities to trace a ransom payment of $3.75 million in cryptocurrency, identify suspects and their flows through our intelligence tools.
The Philippine National Police's Cybercrime Group 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, saying: "Ransom funds were distributed across multiple addresses before eventually reaching cryptocurrency wallets. Binance's swift assistance played a crucial role in helping us move forward with the investigation."
In addition to providing analysis, Binance disrupted the money laundering operation by freezing associated assets. The cryptocurrency exchange 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 charges of conspiracy to distribute narcotics, money laundering, and distributing counterfeit drugs. #CardanoDebate
Binance indicated 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 provides law enforcement with innovative ways to detect and disrupt illicit financing. #Binance