Investing.com – According to Forbes, citing a search warrant it received, the world’s largest cryptocurrency exchange, Binance, holds between $15 million and $40 million, owned by a global drug cartel. writes Business Insider.
A criminal organization used Binance to transfer millions of dollars in illegal proceeds, according to an ongoing US law enforcement investigation.
Cryptocurrency exchange Binance, which has announced plans to buy a minority stake in Forbes, is helping US investigators catch suspects. The investigation began in 2020 when whistleblowers from another cryptocurrency trading platform, the DEA, caught a user offering cryptocurrency in exchange for fiat currency. A criminal named Carlos Fong Echavarria, who later pleaded guilty to charges including money laundering and drug trafficking, has been traced to his blockchain transactions totaling $4.7 million. Following his online activity , investigators were able to identify an additional account receiving funds from Echavarria. The owner of this account, who has not yet been formally charged, allegedly bought nearly $42 million in cryptocurrencies, at least $16 million of which was obtained through the sale of drugs.
According to the senior investigator, “This is an example of how blockchain transaction transparency works against criminals who leave traces behind them.”
However, Binance itself has faced an investigation by the US Justice Department as even the former CFO of the exchange did not get full access to its accounts during his nearly 3-year tenure.
– Materials from Reuters were used in the preparation
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