News like these, as unfortunate as they are shouldn't surprise us and ordinarily shouldn't threaten the existence of crypto but sadly it does. Criminals abuse things, that's why they're criminals. A whole lot of crimes are committed over the internet, does that mean the internet should be banned? Guns are a major problem in our society today but should they be eradicated? Everything has advantages and disadvantages for society. The aim of religion was not to kill people but today and in the past people kill in the name of religion. It doesn't make religion bad, it makes people who abuse it bad. People abuse all sorts of things, if not everything.
So people abusing cryptocurrencies doesn't make crypto bad. It's sad that anti-crypto people would blame crypto for every evil thing that happens in the world.
Topic: Global Drug Conspiracy Used Binance To Launder Millions In Crypto (Read 273 times)
January 03, 2023, 04:12:33 PM
I think the headline of the news is wrong, it should be "WITH THE APPEARANCE OF CRYPTOCURRENCY, WE CAN TRACK MONEY LAUNDERING TRANSACTIONS EASILY NOW" (or other similar titles) but in fact, those who hate cryptocurrency, especially bitcoin control the media, that's why they made articles that led public opinion to think that the emergence of cryptocurrencies, especially bitcoin, was a disaster.
I never liked drug dealers because they were very destructive (I'm worried about the future of my kids) and the government should encourage the adoption of cryptocurrencies so tracking their transactions can be made easier.
there are many reasons why they choose to transact on Binance IMO, (cmiiw); binance has high liquidity - has P2P features - WD requirements are only KYC level 1 and a few others.
I never liked drug dealers because they were very destructive (I'm worried about the future of my kids) and the government should encourage the adoption of cryptocurrencies so tracking their transactions can be made easier.
Well, that's almost not surprising. The only thing I don't really understand is why did they use Binance? I thought they should avoid exchanges.
there are many reasons why they choose to transact on Binance IMO, (cmiiw); binance has high liquidity - has P2P features - WD requirements are only KYC level 1 and a few others.
January 03, 2023, 01:54:26 PM
Of course this is not Binance's fault nor Crypto's fault, criminals can use any means to launder money.
But in my opinion, the US government wants to stir up problems around Binance since it is the largest cryptocurrency exchange in the world. A blow to Binance will cause an earthquake-like effect on Crypto. I see there is a big attempt after FTX towards Binance and many accusations of not having enough reserves, money laundering or the like. of these things.
But in my opinion, the US government wants to stir up problems around Binance since it is the largest cryptocurrency exchange in the world. A blow to Binance will cause an earthquake-like effect on Crypto. I see there is a big attempt after FTX towards Binance and many accusations of not having enough reserves, money laundering or the like. of these things.
January 02, 2023, 05:23:53 PM
It's interesting to see how much shade they try to put on crypto forgetting the mother of all evils belongs to the undisputed fiat and it does not end at this... Fiat has all the wrongs written all over it from corruption, arms dealing, human trafficking, drug trafficking etc but all this is kept away from the people but they would rather terrrify potential crypto users from having financial freedom by running all these negative stories to kept people away from using cryptos...
Otherwise I don't think binance would have done anything about it because they don't run their business like a bank for them to ask for sources of funds and am certain this ~40mil didn't go through as one chunk but rather several little transactions to raise no suspicion, smart move don't you think
Hope these guys get to use mixers to avoid potential holds of funds and destroying good business names..
Otherwise I don't think binance would have done anything about it because they don't run their business like a bank for them to ask for sources of funds and am certain this ~40mil didn't go through as one chunk but rather several little transactions to raise no suspicion, smart move don't you think
Hope these guys get to use mixers to avoid potential holds of funds and destroying good business names.. 
January 01, 2023, 02:58:08 AM
~snip~
If CZ is sentenced with criminal charges, who will be the next biggest warlord in the cryptospace? There is no other person that can be speculated except Justin Sun, I reckon hehehe. It is also rumored that he has exchanged $2 billion of USDC to USD through Circle and has withdrawn this in his own bank accounts. This is only the declared part of his wealth. I am quite certain the larger part of these cryptowhales' wealth are undeclared and siphoned off the cryptospace and sent to their anonymous selves in Swiss bank accounts.
We can't tell. That Justin Sun is rich today and is already influential to a certain extent don't automatically mean he's the next in line for the throne. Prior to Binance becoming the largest exchange, CZ was not really somebody. Before FTX became a strong contender against Binance, SBF was probably off the radar as well. They just came really quick and made a huge name. And it also doesn't help that Justin Sun is a clown.
Considering that the cryptospace had an MIT graduate with a clean identity who is also politically connected to the Democratic party scam their users, I reckon Justin Sun being a clown will not have as much significance if he continues to prove that he is a good businessman or if he helps on the growth and the acceptance of the cryptospace.
December 28, 2022, 08:33:05 PM
~snip~
If CZ is sentenced with criminal charges, who will be the next biggest warlord in the cryptospace? There is no other person that can be speculated except Justin Sun, I reckon hehehe. It is also rumored that he has exchanged $2 billion of USDC to USD through Circle and has withdrawn this in his own bank accounts. This is only the declared part of his wealth. I am quite certain the larger part of these cryptowhales' wealth are undeclared and siphoned off the cryptospace and sent to their anonymous selves in Swiss bank accounts.
We can't tell. That Justin Sun is rich today and is already influential to a certain extent don't automatically mean he's the next in line for the throne. Prior to Binance becoming the largest exchange, CZ was not really somebody. Before FTX became a strong contender against Binance, SBF was probably off the radar as well. They just came really quick and made a huge name. And it also doesn't help that Justin Sun is a clown.
Although the article also somehow put Binance in a good light, albeit mostly to authorities, by making it appear as if the platform can't be used for illegal activities, I think it is done at the expense of its users and its image. But it seems Binance's priority right now is to appear clean in front of regulators.
I believe Binance will care more about pleasing regulators and government authorities, as for their users they know many of them have already been convinced that they are safe, and even after all that has happened to other centralized exchanges they would still keep their money in Binance, the majority of crypto people would only distrust Binance if or when a day comes that they cannot withdraw their money. So the wise thing for Binance to do now is to please the authorities that can hurt them.Yeah, I guess so. Binance is already well-established that it is probably more concerned about the authorities now than keeping its clients. It even seems Binance has this cultish following.
December 28, 2022, 03:10:47 AM
This paints Binance not only as a platform for criminals but also as a platform that works directly and actively with the DEA and other government agencies, sharing users' private information to track them down.
I believe this should be common knowledge for crypto people, that exchanges are ever willing to work with the government and her agencies, and are ever willing to give users' private data to them when they request it, that remains one of the inescapable problem with centralized exchanges, once KYC is submitted, it can be lost, sold or given willingly to third parties.Although the article also somehow put Binance in a good light, albeit mostly to authorities, by making it appear as if the platform can't be used for illegal activities, I think it is done at the expense of its users and its image. But it seems Binance's priority right now is to appear clean in front of regulators.
I believe Binance will care more about pleasing regulators and government authorities, as for their users they know many of them have already been convinced that they are safe, and even after all that has happened to other centralized exchanges they would still keep their money in Binance, the majority of crypto people would only distrust Binance if or when a day comes that they cannot withdraw their money. So the wise thing for Binance to do now is to please the authorities that can hurt them. December 27, 2022, 11:06:03 PM
I've already read this news more than a week ago. But what made me curious beyond anything else was that Forbes is publishing an article which is detrimental to Binance despite the fact that Binance partly owns it.
If plans actually pushed through early this year, Binance acquired $200 million stake in Forbes. At that time, I assumed it was CZ's strategy not only to diversify his empire but also so that this influential media company would be shutting up its mouth regarding Binance or CZ or crypto in general.
But now, this. This paints Binance not only as a platform for criminals but also as a platform that works directly and actively with the DEA and other government agencies, sharing users' private information to track them down.
Although the article also somehow put Binance in a good light, albeit mostly to authorities, by making it appear as if the platform can't be used for illegal activities, I think it is done at the expense of its users and its image. But it seems Binance's priority right now is to appear clean in front of regulators. If this is a deodorizing effort, it's probably an urgent one considering that it might actually be facing criminal charges over violations on money laundering.
If plans actually pushed through early this year, Binance acquired $200 million stake in Forbes. At that time, I assumed it was CZ's strategy not only to diversify his empire but also so that this influential media company would be shutting up its mouth regarding Binance or CZ or crypto in general.
But now, this. This paints Binance not only as a platform for criminals but also as a platform that works directly and actively with the DEA and other government agencies, sharing users' private information to track them down.
Although the article also somehow put Binance in a good light, albeit mostly to authorities, by making it appear as if the platform can't be used for illegal activities, I think it is done at the expense of its users and its image. But it seems Binance's priority right now is to appear clean in front of regulators. If this is a deodorizing effort, it's probably an urgent one considering that it might actually be facing criminal charges over violations on money laundering.
If CZ is sentenced with criminal charges, who will be the next biggest warlord in the cryptospace? There is no other person that can be speculated except Justin Sun, I reckon hehehe. It is also rumored that he has exchanged $2 billion of USDC to USD through Circle and has withdrawn this in his own bank accounts. This is only the declared part of his wealth. I am quite certain the larger part of these cryptowhales' wealth are undeclared and siphoned off the cryptospace and sent to their anonymous selves in Swiss bank accounts.
December 27, 2022, 10:12:38 PM
I've already read this news more than a week ago. But what made me curious beyond anything else was that Forbes is publishing an article which is detrimental to Binance despite the fact that Binance partly owns it.
If plans actually pushed through early this year, Binance acquired $200 million stake in Forbes. At that time, I assumed it was CZ's strategy not only to diversify his empire but also so that this influential media company would be shutting up its mouth regarding Binance or CZ or crypto in general.
But now, this. This paints Binance not only as a platform for criminals but also as a platform that works directly and actively with the DEA and other government agencies, sharing users' private information to track them down.
Although the article also somehow put Binance in a good light, albeit mostly to authorities, by making it appear as if the platform can't be used for illegal activities, I think it is done at the expense of its users and its image. But it seems Binance's priority right now is to appear clean in front of regulators. If this is a deodorizing effort, it's probably an urgent one considering that it might actually be facing criminal charges over violations on money laundering.
If plans actually pushed through early this year, Binance acquired $200 million stake in Forbes. At that time, I assumed it was CZ's strategy not only to diversify his empire but also so that this influential media company would be shutting up its mouth regarding Binance or CZ or crypto in general.
But now, this. This paints Binance not only as a platform for criminals but also as a platform that works directly and actively with the DEA and other government agencies, sharing users' private information to track them down.
Although the article also somehow put Binance in a good light, albeit mostly to authorities, by making it appear as if the platform can't be used for illegal activities, I think it is done at the expense of its users and its image. But it seems Binance's priority right now is to appear clean in front of regulators. If this is a deodorizing effort, it's probably an urgent one considering that it might actually be facing criminal charges over violations on money laundering.
December 27, 2022, 08:51:47 PM
That's quite unfortunate! I am concerned about what the future holds for Binance! They are already facing a federal investigation regarding money laundering, and this incident will allow the regulatory bodies and enforcement agencies to launch a full-scale investigation on Binance and eventually try to close their operations from US soil. Even though they are not directly involved in the drug trade, they will still face the heat. My concern is, that the ordinary public like us may see delayed withdrawals and suspensions due to all these nonsense matters. The cascading effect will be seen on the market which is already struggling with the falling price! Not ideal at all!
What is your favorite exchange? I would argue that all of our favorite exchanges are being used together with Defi to become one big, global moneylaundering ring for drug cartels and other criminal organizations. I would agree that it is unfortunate, however, it also shows everyone of one of the powerful use cases of the cryptospace.
This is only similar to much of the world's greatest inventions. Cell phones can be used to detonate bombs, cars are used by criminals to escape, airplanes are used to carry bombs to drop on populated areas and many other use cases.
December 27, 2022, 02:32:33 PM
A methamphetamine and cocaine gang operating across the U.S., Mexico, Europe and Australia used the world’s biggest cryptocurrency exchange Binance to launder tens of millions in drug proceeds, according to an ongoing investigation by the US Drug Enforcement Administration. Between $15 and $40 million in illicit proceeds may have been funneled through Binance, the DEA alleged.
This Forbes article is just a part of big propaganda machinery and it looks like they are coming hard for Binance exchange and CZ, but in reality they are coming from all of us regular Bitcoin users.Only way they can control Bitcoin is with stuff like this related with price, shutting down of exchanges, creating panic and decreasing value of Bitcoin, and meanwhile increasing regulations and restrictions.
I recently watched a good new series with Sylvester Stallone called Tulsa King and they just mentioned Bitcoin being used by criminals and hackers, story about that is just getting started.
Bad propaganda is spreading everywhere, and that doesn't mean that criminals don't use Bitcoin, but they certainly use fiat currencies in 99% of time.
December 27, 2022, 04:40:15 AM
Isn't this a very small value compared to total volume those drug dealers deal with.?
Uh, yeah. The state I live in is small, and I could almost guarantee you there's more than $40 million in cash drug deals going down every year. Cash, not crypto.But we all know headlines like this are complete propaganda aimed against crypto at a time when lawmakers are slobbering all over themselves, thinking of awesome new regulations and hoping the public doesn't push back against any of them. And by "we" I mean those of us on the forum. The bad news is that most of the general public does equate "crypto drug deals/Binance involvement" with "crypto is bad".
Not enough people think for themselves and come to their own conclusions about things, but rather rely on what the media tells them to think and believe. Even less try to do something about shit like this. I've written letters to my congressmen before, so while I don't exactly stand on a street corner wearing a pro-crypto sandwich board, I haven't done nothing. Anyone got a sandwich board I could wear?
December 27, 2022, 01:35:00 AM
This is a negative side that must be accepted in this industry. I think this is no longer just a conspiracy when viewed more logically. Both binance and other centralized exchanges are vehicles that provide abundant reserves that are liquid enough for multi-million dollar businesses. Then, wouldn't it be a shame to ignore this object for dirty practicers or they have actually taken advantage of it since the beginning of the industry?
It's not just speculation, regulatory involvement is indeed mainly to catch crimes like this which are certain to happen one day, so investigations are the thing that should be done and exchanges are required to always cooperate in order to gain public trust.
It's not just speculation, regulatory involvement is indeed mainly to catch crimes like this which are certain to happen one day, so investigations are the thing that should be done and exchanges are required to always cooperate in order to gain public trust.
December 26, 2022, 11:02:55 PM
Such practices always have been the FBI's concern, bitcoin being used for illicit transactions; drug cartels used gold in the past to launder money now it's bitcoin. And the medium used for the transaction is always in trouble when discovered. Binance CZ may have lots of questions to answer and tracing to do regarding this operation. KYC is quite useless in tracing people, it'll always lead to the wrong person. I don't understand why it's needed if it can be manipulated. Though the FBI has enough tools to track the people involved, these drug cartels are not dumb people. The blame will be on Binance and cryptocurrency, which drain the reputation of crypto on daily basis.
December 26, 2022, 12:06:08 PM
Just ask Chainalysis to track them. They'll do a damn good job at that, because these blokes did not bother to mix their funds with a mixer or Coinjoin. Exchange hopping alone is not enough to obfuscate your source of funds.
December 26, 2022, 10:50:46 AM
I don't know if this is negative news because someone got caught trying to launder $15-$40Mln or if it's bad news because it shows how easy some transactions can be to spot (especially for exchanges). Or perhaps it's not bad news because of the uncertainty stated that they can't get an accurate figure for how much actually came from them.
For global drug ratios, this does seem small and for a gang that large too. I'd be more interested at seeing what other accounts the investigation finds that might've moved more money (perhaps banks or payment processors would turn a blind eye or hide information for an appropriate fee in a way bitcoin can't)...
For global drug ratios, this does seem small and for a gang that large too. I'd be more interested at seeing what other accounts the investigation finds that might've moved more money (perhaps banks or payment processors would turn a blind eye or hide information for an appropriate fee in a way bitcoin can't)...
December 26, 2022, 08:41:02 AM
A methamphetamine and cocaine gang operating across the U.S., Mexico, Europe and Australia used the world’s biggest cryptocurrency exchange Binance to launder tens of millions in drug proceeds, according to an ongoing investigation by the US Drug Enforcement Administration. Between $15 and $40 million in illicit proceeds may have been funneled through Binance, the DEA alleged.
More details:
https://www.forbes.com/sites/thomasbrewster/2022/12/19/mexican-drug-gang-money-laundering-over-binance-crypto-exchange/?sh=2c9869754a59
More details:
https://www.forbes.com/sites/thomasbrewster/2022/12/19/mexican-drug-gang-money-laundering-over-binance-crypto-exchange/?sh=2c9869754a59
Only those that leave by centralized exchanges can have the consequences frombthe heat thereof, but not until then every user remain safe thinking bitcoin can only be secured with exchanges under a central authority like Binance, but even so, i still think about the amount of asset worth of millions involved and i think should centralized exchange be their best choice and alternative to use or even a more easy means to get them apprehended.
December 26, 2022, 08:15:58 AM
Well, that's almost not surprising. The only thing I don't really understand is why did they use Binance? I thought they should avoid exchanges.
December 26, 2022, 08:02:57 AM
I do not think this news caters negative thought about crypto. In fact I think this is a positive publicity because Binance having suspcious of the transaction cooperated with the authority in tracing illegal activities and catching the perpetrator.
This is the beauty of blockchain, record is permanent and transparent. As Mathew Price stated:
This showcase that illegal activity done in a decentralized blockchain will serve as proof and can trace criminals.
This is the beauty of blockchain, record is permanent and transparent. As Mathew Price stated:
Quote
“This is actually an example of where the transparency of blockchain transactions works against criminal actors,” Price told Forbes. “The bad guys are leaving a permanent record of what they're doing.
This showcase that illegal activity done in a decentralized blockchain will serve as proof and can trace criminals.
December 26, 2022, 06:34:45 AM
Technology is being used at its best to keep things to be used for the good. When the same doesn't happen and we see people using it for bad, it isn't the fault of bitcoin or Binance. I find this a way drug mafia have found for the ease of transactions and trade. Amidst all sort of measures taken from Exchanges and regulatory bodies, the illicit usage through exchanges continues. This shouldn't happen, because the same will create negative opinion among the cryptocurrency users.
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