At CoinGeek, we’ve repeatedly covered how ransomware is a problem that costs innocent victims hundreds of millions of dollars every year.
Ransomware is not going away anytime soon, from the Wannacry attack to the infamous NetWalker ransomware that has damaged hospitals, schools, government offices and countless small businesses.
Now, Federal Bureau of Investigation (FBI) Special Agent Daniel M. Sirmons testified under oath that, based on his knowledge, training and experience, ransomware attackers often use digital currency exchanges like Binance to launder or confuse their money. illegal gains.
This is not the first time Changpeng Zhao has been linked to Binance’s criminal activities using so-called “cryptocurrency”.
The stolen funds were allegedly deposited directly into Binance accounts
In the deposition, Special Agent Sirmons cited several cases where US-based companies were targeted by the NetWalker ransomware and extorted for hundreds of thousands of dollars (paid in BTC) each.
According to his testimony, after combining the funds and mixing them in different wallets, the attackers sent multiple deposits directly to Binance accounts. Binance records show that the depleted account belongs to a 20-year-old Ukrainian national named Tetiana Lukianiuk. This person then traded BTC for Tether, keeping both currencies worth approximately $433,271.39.
Sirmons said there is probable cause to believe the funds were obtained through ransomware attacks and that the funds are money-laundering property and are therefore subject to civil forfeiture.
However, he also highlighted the claim that Binances is a non-US company and is not subject to US jurisdiction. Therefore, the US process cannot compel it. However, according to Sirmons, he said he would freeze the account temporarily, but not indefinitely, which could jeopardize the ongoing criminal investigation.
Binance and Tether always seem to be associated with dirty work
Since we started reporting on the Crypto Crime Cartel and its misdeeds, two names have come up repeatedly: Binance and Tether. Here again they are in the context of theft and money laundering; surprise!
Because it is based in the Cayman Islands and its CEO jumps jurisdictions constantly, it is difficult for Binance to comply with the legal processes of large governments like the United States. Dr. Craig Wright said a long time ago that this was nothing more than a bucket shop used to launder money, and it looks like the evidence is proving him right again.
No matter what steps Zhao takes to make his firm appear legitimate, such as buying a stake in Forbes (which could affect his report), cases like this will always tarnish his and Binance’s image. There’s no whitewashing the crime spree of the past decade or Binance’s involvement in it since its launch in 2017.
Binance and centralized exchanges are the opposite of Bitcoin
In a sad irony, Bitcoin’s biggest public cheerleaders, the biggest players in the industry, have become the antithesis of the peer-to-peer electronic money system it should be.
Far from being a shadowy digital currency designed specifically for crime, Bitcoin was launched as a fully traceable cash system. The man behind the nickname Satoshi Nakamoto Dr. Wright has repeatedly explained that Bitcoin is the opposite of what many people think. All transactions occur on a public ledger and are presented in clear text, making it easier to detect and prosecute illegal activity such as theft and money laundering.
Contrary to what BTC supporters claim, Bitcoin nodes can be legally forced to freeze funds and wallets pending a criminal investigation. If a crime is discovered, they can also be forced to make illegal profits. It will be shown in court soon.
Imagine if the gold was stolen and turned into lead. If the thief gives it back, it turns into gold again… – Satoshi Nakamoto
Unfortunately, the world created by Zhao, Tether’s executives, and many other “crypto” advocates is the opposite of the honest, transparent world envisioned by Satoshi Nakamoto. Nevertheless, his original dream and vision is as alive as Bitcoin SV.
Exchanges like Binance and dodgy stablecoin issuers like Tether can continue to allow their products and platforms to be used for crimes as long as they want, but that won’t change the fact that Bitcoin has left a perfect trail of evidence leading directly to them, and the hammer will come down on them over time.
From BitMEX to Binance, Bitcoin.com, Blockstream, ShapeShift, Coinbase, Ripple,
Ethereum, FTX and Tether – combining the digital asset revolution and turning the industry into a minefield for naive (and even seasoned) players in the market.
New to Bitcoin? Check out CoinGeek Bitcoin for beginners The section is the ultimate resource guide for learning more about Bitcoin and blockchain as envisioned by Satoshi Nakamoto.