Binance stated on August 28 that after a collaborative investigation between Binance, Chainalysis, and industry partners, law enforcement agencies in the Asia-Pacific region froze nearly 50 million USD of illegally obtained funds in June 2024.
Chainalysis used blockchain analysis to trace the flow of money from dozens of victims between mid-November 2022 and July 2023, identifying funds aggregated into a main wallet and then distributed to five final wallets, holding nearly 47 million USD in USDT.
MAIN CONTENT
Nearly 50 million USD was frozen in June 2024 following a multi-party investigation supported by Binance and Chainalysis.
The transaction chain from November 2022 to July 2023 shows that the scammer aggregated funds into a main wallet and distributed them to five final wallets, holding nearly 47 million USD (USDT).
Rapid intelligence sharing with the stablecoin issuer led to the freezing order, preventing illegal withdrawals and conversions.
How was the case discovered and published?
Direct response: Binance announced information on August 28, stating that law enforcement in the Asia-Pacific region had frozen nearly 50 million USD after an investigation supported by Binance, Chainalysis, and industry partners.
Analysis: The information clearly indicates that the freezing action took place in June 2024, as a result of intelligence sharing and technical evidence from the investigative team. This data highlights the importance of coordination between exchanges, blockchain analytics firms, and authorities to timely prevent the flow of illegal funds.
What contributions have Chainalysis and blockchain analysis made?
Direct response: The Chainalysis investigative team used blockchain analysis technology to track the flow of money and identify the money transfer patterns related to the fraud network operating in Southeast Asia.
Analysis: By decoding transaction history on the blockchain, the team identified intermediary addresses and how funds were aggregated into a main wallet and then distributed to five final wallets. This method allowed for the construction of a chain of evidence for law enforcement, helping them identify targets and addresses that needed to be frozen.
How did the criminal organization operate the flow of money?
Direct response: The scammer collected money from multiple victims (transactions between November 2022 and July 2023), aggregated it into a main wallet, and then distributed it to five final wallets, holding nearly 47 million USD in USDT.
Analysis: The pattern of aggregating and distributing through intermediary wallets is a common tactic to conceal the source of funds; giving back a small amount to victims is also used to prolong operations and reduce suspicion. Retaining a large balance in USDT indicates that criminals take advantage of the stable value of stablecoins to maintain the value of stolen assets.
How did law enforcement act and how effective was it?
Direct response: After receiving intelligence information, the regional law enforcement agency requested the stablecoin issuer to freeze the accounts, an action that took place in June 2024 and prevented the exchange or withdrawal of stolen funds.
Analysis: Freezing from the stablecoin issuer is a crucial step in halting money flows, as transactions between wallets on the blockchain and off-chain environments often require orders from the issuer to prevent conversion to fiat currency. Timely action helped prevent the consumption or laundering of large amounts of money.
What are the consequences and lessons for cryptocurrency platforms and users?
Direct response: The case shows that the collaboration of blockchain analysis technology, exchanges, and authorities is effective in preventing illicit money flows; it also warns of the risks if parties do not share information promptly.
Analysis: Exchanges and stablecoin issuers need mechanisms to receive, process alerts, and freeze quickly. Users need to be more vigilant against scams, check transaction transparency, and use services with clear AML/CFT policies to reduce the risk of fraud and asset loss.
Frequently Asked Questions
When did the freezing take place?
June 2024 is when law enforcement agencies in the Asia-Pacific region issued a freezing order for nearly 50 million USD.
How long did Chainalysis track the funds?
The investigative team used transaction data from November 2022 to July 2023 to trace the flow of money and identify distribution patterns.
What type of asset is the money held in?
Most of the funds were aggregated and held in USDT, with a total value of nearly 47 million USD according to transaction chain analysis.
What does freezing from the stablecoin issuer mean?
The freezing request from the issuer prevents conversion to fiat currency or withdrawal from the system, halting illegal money flows and supporting investigative agencies.
What should users do to avoid similar risks?
Users should verify the authenticity of services, enable security features, be vigilant about transfer requests, and prioritize platforms with transparent AML/CFT processes.
Source: https://tintucbitcoin.com/binance-phong-toa-47-trieu-usd-apac/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated on the latest news about the cryptocurrency market and not miss any important information!
