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Binance, the world’s largest crypto exchange by trading volume, has debunked a report by Reuters, which claims that the exchange is a hub for hackers, fraudsters, and drug traffickers.
The report also claims that Binance’s service was leveraged by hackers to move relatively $2.5 billion between 2017 and 2022.
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In response to the allegations, the team at Binance shared reasons why crypto is not a safe haven for criminals to launder their illicitly made money as insinuated by many.
The exchange further pointed out that of all transactions initiated in 2021, only 0.15% were associated with illicit activity.
On the other hand, between 2% to 5% of traditional fiat worth around $800 billion to $2 trillion have been associated with illicit activity in the same year 2021.
Binance also pointed out that the Reuters journalist who came out with the allegation does not understand how on-chain data work.
Binance noted:
“Recently, a journalist reached out and claimed to have evidence that Binance enabled the laundering of some $2.5 billion between 2017 and 2022. However, it’s clear that this journalist simply doesn’t understand the data nor how blockchain works.”
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The team at Binance further explained that crypto transactions are very traceable, making it a bad choice for criminals:
“Unlike cash, which is nearly impossible to track, Blockchain has proven to be one of the most powerful tools for law enforcement.
“The immutable, public nature of the blockchain makes crypto a poor choice for money laundering because it allows law enforcement to uncover and trace money laundering far easier than cash transactions.”
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