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Binance and Taiwanese Authorities Bust $6 Million Crypto-Fueled Money Laundering Ring

Last Updated May 21, 2024 3:19 PM
Teuta Franjkovic
Last Updated May 21, 2024 3:19 PM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • Binance helped Taiwanese authorities bust a major crypto money laundering operation.
  • The exchange says it wants to help law enforcement in the fight against financial crime.
  • Meanwhile, the company expands in Southeast Asia, despite regulatory challenges in the US.

Binance has teamed with Taiwan’s Ministry of Justice Investigation Bureau and the Taipei District Prosecutors Office to crack a major cryptocurrency-related money laundering case.

The case  involved illicit funds worth almost NT$200 million ($6 million)

Binance Aids Taiwan in Crypto Fraud Bust

Binance’s involvement in the case was, apparently, crucial. The exchange’s Financial Crimes Compliance (FCC) Department used its expertise and shared intelligence with Taiwan’s authorities.

The criminal operation used crypto to launder money  for scam groups. It used a variety of tactics to seem legitimate, including making up:

  • Customer conversation records.
  • Remittance proofs.
  • Falsified identity verification data.

Despite trying to hide their crimes, Taiwanese police arrested the gang.

The police traced and monitored several suspicious crypto transactions. They also spoke to Binance, who were able to meet officers and prosecutors to talk about how to help matters.

The exchange said :

“Binance’s experienced FCC teams provided insights and recommendations based on crypto flow analyses, thereby helping to narrow down the circle of potential suspects more effectively.”

Strengthening Global Anti-Crime Efforts

Prosecutor Lo Wei-Yuan from the Taipei District Prosecutors Office, filed indictments in April against nine suspects on charges of:

  • Aggravated fraud.
  • Violation of the Money Laundering Control Act.
  • Breach of organized crime prevention regulations last month.

Damien Ho from Binance’s Asia-Pacific team said :

“We will continue to uphold this goal and deepen our cooperation with global law enforcement agencies.”

Last week, the Financial Intelligence Unit of India (FIU-IND) said  that Binance had successfully registered with the regulatory body. This marked the exchange’s return to India after becoming compliant with Indian law.

This followed the exchange buying a license from Dubai’s regulator, VARA . This allowes  the platform to serve retail, qualified, and institutional clients. As part of the licensing process in Dubai, Changpeng Zhao, the founder and former CEO of the platform, stepped down from voting control over the Dubai unit.

Expanding in SEA Region Amid Regulatory Scrutiny

Also, earlier this year, the exchange launched a joint venture, Binance Thailand, in collaboration with Gulf Innova, a subsidiary of Gulf Energy Development. The new company, Binance TH, offers digital asset exchange services featuring Thai baht trading pairs.

The move comes at a time when Binance has faced regulatory scrutiny across the world. In the past year, the US Commodity Futures Trading Commission (CFTC) filed charges against the exchange. The CFTC said Binance operated an illegal digital asset derivatives exchange and violated federal laws.

Similarly, the US Securities and Exchange Commission (SEC) charged Binance Holdings LTD and Zhao with operating unregistered exchanges and brokerages. It also said Binance sold unregistered securities.

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