Binance Fires Back at Reuters' Money Laundering Allegations
Crypto exchange Binance issues response to article published by Reuters that claims the exchange has been a “hub for hackers, fraudsters and drug traffickers,” saying that there’s at least “$2.35 billion in illicit funds” laundered within the exchange.
Binance says allegations are untrue and attempts by certain interested parties to “mislead the general public” by spreading disinformation.
Binance also pointed out that traditional finance platforms are more tainted with illicit funds than crypto, which is transparent in nature.
Binance has responded to reports that it is being investigated for money laundering.
Binance has denied Reuters' allegations, calling them false and created by people with ulterior motives.
Binance, a crypto exchange, has responded to an article by Reuters. The article accused the exchange of being a "hub for hackers, fraudsters and drug traffickers." Binance says that there's at least "$2.35 billion in illicit funds" laundered within the exchange.
Binance has addressed the recent allegations in a blog post. They state that not only are the claims untrue, but that it's an attempt by certain individuals to spread false information and mislead the public.
The author suggests that people ignore those who cherry-pick data or make up stories for fame or financial gain. They advise people to look at the facts instead.
The exchange point out that traditional finance platforms are more tainted with illegal funds than crypto, as cryptocurrency is transparent in nature. They also referenced statistics from the United Nation that 2%–5% of fiat money is associated with illegal activities.
Lastly, Binance published the email correspondence it had with Reuters, which includes Binance's responses to the questions Reuters asked before it published the article that was critical of Binance.
Binance Labs is a $500 million fund that will help drive crypto, Web3, and blockchain adoption.
On Monday, Reuters published a report accusing Binance of being involved in money laundering with illicit funds in the billions. The article criticised the exchange for things like investment fraud, weak Know Your Customer (KYC) and Anti-Money Laundering protections.
The United States Securities and Exchange Commission (SEC) is investigating the exchange's relationship with market-making firms Sigma Chain AG and Merit Peak. These firms buy and sell digital assets on the Binance.US exchange.