Top search|Binance is suspected to be a conduit for money laundering, so investors should be wary
First of all, the most obvious thing that everyone has noticed recently is that Binance has started to go down, and this is the third time recently that Binance has gone down. As a global first-tier exchange, such frequent technical problems are obviously not a simple "technology peak" problem, in fact, there is a huge risk behind it.
Take the outage on October 20th. It's not just any outage. There's a big problem behind it. According to sources close to Binance, the outage came after the company was ordered to shut down its operations in Jersey due to money laundering concerns. Local authorities told Binance to limit withdrawals of sterling, euros and all related supported cryptocurrencies from October 30.
The outage was caused by an exodus from Binantin from the euro zone and from big OTCs that use the pound, as well as the migration of Binantin's servers following the ban.
Binance has been sued in several countries for providing a conduit for money laundering
This is not the first time Binance has been evicted by local authorities over money laundering, and has been caught up in class-action lawsuits in many countries, as any old man who remembers remembers.
Japanese cryptocurrency exchange Fisco filed a lawsuit against Binance ina US court in September, claiming it facilitated the laundering of $63m in cryptocurrency after a 2018 hack at Zaif (now acquired by Fisco).
According to Fisco's complaint, on-chain analysis traced the hackers to a bitcoin address from which they cleaned 1,451.7 bitcoins through Binance, which had the ability to freeze the account and block transactions, but Zaif's customers and the exchange itself suffered financial losses because of Binance's lack of action.
Binance's earlier history of money laundering can be traced back to two years ago, when a Twitter user posted a question, Cold wallet WEX accounts are quietly transferring assets through Binance, which means that Binance is acquiescing to the black market money laundering of Cold wallet.
In 2019, a source also confirmed that Binance and Tether issued USDT money laundering, after which it was also subject to a side investigation by the U.S. SEC.
The platform is full of black money, Binance has become a hotbed of money laundering
Reliable data from blockchain security team PeckShield's crypto asset tracker platform shows that in the first half of 2020, exchanges saw 13,927 high-risk assets with a market value of about $1.4 billion in bitcoin. In June 2020, there were 101 hacks and about $2.591 billion in stolen money. Binance has become the "hotbed of money laundering" in the crypto market, with the inflow and outflow of the exchange ranking second and first.
In fact, many people in the circle have heard about Binance laundering money. Binance itself and the inseparable relationship is also because Binance is suspected of money laundering operations. Money laundering has brought huge profits to Binance. In line with the mentality of "accepting everything", Binance does almost no risk control in OTC. Binance's goal is simple: to make money.
Zhao Dong, who was arrested by Chinese police, was Binance OTC's biggest trader. After losing the support of this important ally, Binance began to move money laundering out of China. That's why Binance is on the list as the rest of the world has recently stepped up its crackdown on black money.
Binance still does not give up the domestic market channel
In order to escape from the law, Binance's main body was repeatedly transferred, after withdrawing from China, successively traveled to Japan, Malaysia and other island countries.
But Binance, which says it is pulling out of the domestic market, is quietly keeping its trading platform open to mainland users, who also have a large number of Chinese users.