binance Is it possible to launder money on exchanges?

[Obliv0n 333]

Today amid the uncertainty of the market, the firms Hyad and Advanced intelligence, reported in a statement that the Bitcoin's obtained through the attacks perpetrated by the Ryuk ransomware are being indirectly laundered in Binance and Huobi.

 

The nature of this accusation comes from the analysis of 61 addresses associated with the funds from data hijacking based on Ryuk, which used mixers with the purpose of selling funds without raising suspicions.

 

In the same way, they use intermediaries, that is, third parties already verified by the exchange to make the process more transparent.

It is estimated that the funds sold may total $ 16 million.

 

At the moment the exchange houses have not commented on the matter, but what do you think?
Will it be as easy as they paint it?

[Dang3r 103]

In general, money laundering, although it is conceived as an illegal act, has the idea that it is "easy" to carry out, due to the decentralized nature of cryptocurrencies, however, the safest thing is that there is a complicated process behind of the same, the note confirms it and considered that Binance and huobi are not to blame for that, they are only exchanges that fulfill the purpose of exchanging assets.

[Dormilon 2183]

On 1/12/2021 at 10:50 AM, Obliv0n said:

At the moment the exchange houses have not commented on the matter, but what do you think?
Will it be as easy as they paint it?

@Obliv0n If possible, you just have to do it very carefully, if you make very suspicious deposits, the platform notices the movement and can take action on it, but if the theft was made to its own wallets and then sent through multiple channels it can enter a part in any exchange and it will take a while to realize it, meanwhile the money can be laundered before they can take action against the pirates, the execution was well planned and looking for the highest level of anonymity possible, that's the way things are In the technological world, the daily struggle to avoid fraud and theft is titanic.

[Obliv0n 333]

2 hours ago, Dormilon said:

@Obliv0n If possible, you just have to do it very carefully, if you make very suspicious deposits, the platform notices the movement and can take action on it, but if the theft was made to its own wallets and then sent through multiple channels it can enter a part in any exchange and it will take a while to realize it, meanwhile the money can be laundered before they can take action against the pirates, the execution was well planned and looking for the highest level of anonymity possible, that's the way things are In the technological world, the daily struggle to avoid fraud and theft is titanic.

@Dormilon Of course, for that reason is that they use mixers so that it passes through as many wallets as possible that are not interconnected, in the end the deposit could have been made in the United States for example but ends up being registered by a wallet assigned to an IP in Europe or Asia, it is impressive the fact that even as technology and security advance, man always finds a way to sneak in 😅

[Raqeebzy 6456]

On 1/12/2021 at 3:50 PM, Obliv0n said:

At the moment the exchange houses have not commented on the matter, but what do you think?
Will it be as easy as they paint it?

First of all, it is a big red flag if money deposited to exchanges is from addresses that are suspicious or are directly/indirectly associated with money laundering. Once such funds is deposited to a reputable exchange, it would be somewhat tough to take it out without proper verification guidelines. And even a huge amount of $16M won't pass through any good exchange without KYCs and that's where every misery will start to unfold.

To me, laundering money through exchanges (top ones especially) can never be easy.

[tienda 8776]

Yes you can do that in website exchange where they don't use KYC, but I think is website exchange where they ask KYC is not possible, because your wallet address is registered at your name, anything will discover after you do the transaction, they can track your address wallet registered on a such website exchange regulated.

[Obliv0n 333]

3 hours ago, tienda said:

Yes you can do that in website exchange where they don't use KYC, but I think is website exchange where they ask KYC is not possible, because your wallet address is registered at your name, anything will discover after you do the transaction, they can track your address wallet registered on a such website exchange regulated.

Of course I understand that certain movements can be assigned to an individual, but today it is known that even KYC's can be falsified since in some countries the identity documents are of low quality and replicable through photoshop, that is why that I can "understand" why they accuse these two exchange houses despite having so many filters to avoid washing.

[Syedbesharat 5423]

The both exchanges have the KYC od member who have done the transactions so it's gonna be come out sooner or later who is the culprit or this is applied to us small time investors who goes for KYC and always hold for sudden bjg translations. Its not a small amount which exchanges ignore they have thoroughly follow up the account and make it conformed before final withdraw. This shows their is money laundering going on in crypto and Goverment agencies are ware of cryptocurrency .

[Mukta akter 37]

Yes, in my opinion it is possible to spread money in exchange.  There are many people who want to get one in exchange for another.  But some people do it legally and some people do it illegally. It is not a crime to propagate by investing illegally.  So it can be said that money can be spread in exchange.

[Ridam 7455]

Well there are many concerns ongoing about the money laudering through the decentralised Projects. And the major benefit of Blockchains  is becoming the major concerns right now. Thats why the approach of Kyc for major exchanges seems considerable at some extent. And it will sure help in avoiding the Fraud and money laundering in near future.

 

[kamelq 22]

On 1/12/2021 at 4:50 PM, Obliv0n said:

In the same way, they use intermediaries, that is, third parties already verified by the exchange to make the process more transparent.

@Obliv0n

We know that money laundrey exist almost everywhere, but iis surprising that they are able to use verified third parties to complete their illegal actions!

Either these parties are in aware of the situation too or there is something missing that is causing this issue. But it is good that they tracked these addresses and made the report public. Maybe it can turn some heads about similar scenarios in the future.

[Obliv0n 333]

19 hours ago, kamelq said:

@Obliv0n

We know that money laundrey exist almost everywhere, but iis surprising that they are able to use verified third parties to complete their illegal actions!

Either these parties are in aware of the situation too or there is something missing that is causing this issue. But it is good that they tracked these addresses and made the report public. Maybe it can turn some heads about similar scenarios in the future.

@kamelq Of course, those "third parties" unrelated to attacks and robberies, are aware that they are laundering said money with their accounts or at least the majority should know it, in the same way it is known that many accounts are verified with data stolen and bought in the dark Web.

[Obliv0n 333]

On 1/27/2021 at 3:15 PM, Syedbesharat said:

The both exchanges have the KYC od member who have done the transactions so it's gonna be come out sooner or later who is the culprit or this is applied to us small time investors who goes for KYC and always hold for sudden bjg translations. Its not a small amount which exchanges ignore they have thoroughly follow up the account and make it conformed before final withdraw. This shows their is money laundering going on in crypto and Goverment agencies are ware of cryptocurrency .

The worst thing is that there is the possibility that not only those responsible will be sanctioned, since the brand in this case Binance, should be responsible and may be sanctioned for allowing such practices, weeks have passed and an official statement was not known for deny this fact.

[Rozy 1918]

There are so man claims that crypto currencies are a way of money laundry  but for me they are just allegations, with no real proof, all the transitions that happened in the world are available for any one to see, even though you are not able to seethe sender's identity but you are able to see what is sent from what address to what address, and of course the large amounts will be under suspicions.

[Dorjoy12 8962]

On 2/1/2021 at 7:00 PM, Ridam said:

Well there are many concerns ongoing about the money laudering through the decentralised Projects. And the major benefit of Blockchains  is becoming the major concerns right now. Thats why the approach of Kyc for major exchanges seems considerable at some extent. And it will sure help in avoiding the Fraud and money laundering in near future.

 

This is true and for KYC on top rated exchange  this kind of activity now a days decreasing. I still has some misunderstanding about money laundering on exchange site.. also scammer do not dare to deposit huge amount laundering money on low rated exchange site..

[Whited35 15285]

On 1/12/2021 at 8:35 PM, Obliv0n said:

At the moment the exchange houses have not commented on the matter, but what do you think?
Will it be as easy as they paint it?

Most of the biggest and reputed exchange sites like CoinbasePro, Binance, etc. uses the advanced tools to detect the illicit funds entering into the platform. If funds are entered from the criminals on such exchange sites, they freeze the funds by suspending the withdrawal and trading options so I do not think it is easier to launder a huge amount on the centralized exchanges. 

[Shadi29 871]

Dear members, of course, this is possible because of the monetary decentralization enjoyed by the encrypted currencies, because they do not ask about the source of the funds that you want to buy the currencies through, and it is possible to invest in that, trading platforms do not care who you are or where you brought your money

[kryptonick 2659]

Most exchanges are blocking cryptocurrencies coming from mixers. Binance is certainly doing that but we don't know if they are selectively blocking funds or not. I've read some reports that hacked money moved into exchanges, while users claim they used Wasabi and their funds were frozen on Binance. I wouldn't use mixers right now as it will be even more suspicious and would ring bells for authorities.

[pacific 2268]

Yes, it's possible to launder money by a cryptocurrency exchange or the users of  the exchange. As cryptocurrencies are virtual, and it has no any authority involved to take its control, there's a high chance that it can be used for laundering. So, many cryptocurrency exchange are being regulated by the KYC, and it's mandatory for its users to verify KYC before performing trades of large volumes or withdrawal of crypto funds to any other hardware or online wallets.