Binance fires back at Reuters’ money laundering allegations

Crypto exchange Binance published a lengthy response to an article published by Reuters that claims that 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. 

In a blog post, Binance addressed the issue and noted that the article’s allegations are not only untrue but are also attempts from certain interested parties to “mislead the general public” by spreading disinformation. Binance wrote:

“We highly suggest you ignore those authors and pundits who cherry-pick data, rely on conveniently unverifiable ‘leaks’ from regulators, and feed into the cult of crypto paranoia for fame or financial gain. Instead, just look at the facts.”

The exchange also pointed out that traditional finance platforms are more tainted with illicit funds compared to crypto, which is transparent in nature. Moreover, the exchange cited statistics from the United Nations that 2-5% of fiat money is associated with illicit activities.

Lastly, within the blog post, Binance completely published its email correspondence with Reuters. This includes Binance complete responses to Reuter’s inquiries before publishing the article criticizing Binance.

Related: Binance Labs’ $500M fund to catalyze crypto, Web3, blockchain adoption

On June 6, Reuters published a special report claiming that the Binance exchange is involved in money laundering involving billions of illicit funds. From investment fraud and darknet dealings to weak Know Your Customer (KYC) and Anti-Money Laundering protections, the media outlet laid down its critique of the exchange.

Back in February, the exchange also faced investigation from the United States Securities and Exchange Commission (SEC) over the exchange’s relationship with market-making firms Sigma Chain AG and Merit Peak which engages with buying and selling digital assets on the Binance.US exchange.