On June 6th, local time, it was reported that Zhao Changpeng’s digital currency exchange Binance participated in illegal money laundering, involving an amount of at least 2.35 billion US dollars.
According to reports, in September 2020, a North Korean hacker stole 5.4 million digital assets from a small digital currency exchange for North Korea’s nuclear weapons program, and then quickly transferred the assets to the Binance exchange for money laundering. The hacker stole up to $1.75 billion in digital currency and laundered it through Binance and Huobi.
German police say European criminals have been using Binance since 2020 to launder money, mainly the proceeds of fraudulent investments. Binance also has deep ties with the Russian government, continuing to serve in Russia after the Russian -Ukrainian war. Additionally, Binance is also the main payment provider for the darknet marketplace Hydra, a site where drug dealers sell illegal drugs.
Current and former police officers in five countries have revealed that criminal syndicates have made up a significant portion of Binance’s growing user base in recent years. When being investigated by law enforcement agencies, Binance has always maintained denial, and the illegal rectification involved is only a few words to deal with, and the review of money laundering is very weak. Miles Guo mentioned that Binance is an exchange that helps the CCP to launder money.