Binance Accused of $9M+ Being Laundered On Its Exchange

By Abhimanyu Krishnan | News | 15 Sep 2020

Japanese cryptocurrency exchange Fisco has accused Binance of aiding the laundering of $9 million from a 6,000 BTC hack that occurred in September 2018, according to court documents filed in the Northern California District Court on September 14.

  • In September 2018, Fisco Exchange - then known as Zaif - lost 6,000 BTC in a hack, 1,451 of which (roughly $9.4 million) was transacted via Binance through a single address
  • The primary complaint issued by Fisco is that, according to them, Binance uses lax KYC and AML procedures which allowed for the money to be laundered
  • The plaintiff alleged that Binance’s policy that lets users with no KYC registration to make transactions worth less than 2 BTC, which facilitated the laundering
  • The attackers separated the stolen sum into several different accounts, each making transactions worth less than 2 BTC
  • It emphasizes that Binance had the capability to freeze the addresses in questions, but failed to do so
  • The complaint then goes on to state that Binance was informed of the attack, but “either intentionally or negligently failed to interrupt the money laundering process when it could have done so”
  • Fisco has filed the complaint in California because Binance’s digital data, running on AWS, is largely operated from the state - despite Binance saying that it has no physical headquarters

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Abhimanyu Krishnan
Abhimanyu Krishnan

Technophile, cryptocurrency enthusiast and journalist.


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