Regulators in the United States started an investigation into popular crypto exchange, Binance, shedding light on some interesting news.
According to the law enforcement organisations involved in the investigation, the cryptocurrency exchange allegedly did not comply with sanctions and it has facilitated money laundering. According to a recent order, Binance allegedly obtained hefty sums from another cryptocurrency exchange that is currently investigated for charges involving money laundering, Bitzlato. FinCEN, the United States Financial Crimes Enforcement Network, has published the order that showcased Bitzlato’s founder, a Russian citizen called Anatoly Legkodymov, managed to launder USD 700 million via Binance.
According to the US DoJ (Department of Justice), the suspects funded illicit drug transactions, gambling, and other illegal activities with the money, via the dark web. Tuesday, the 17th of January, US law enforcers arrested Mr. Legkodymov after the investigation’s discoveries.
A US Department of Treasury division, FinCEN made note of a majority of high transactions on Bitzlato, and concluded that their counterparts were involved in scams and illegal activities. The organisation also pointed to Binance as Bitzlato’s largest recipient of Bitcoin in the period between May 2018 and September 2022. Allegedly, Binance obtained more BTC from the investigated crypto exchange than others.