Binance works with DEA ​​investigators to track global drug cartel

The opinions expressed by entrepreneurs contributors are their own.

The US Drug Enforcement Administration (DEA) has alleged that a global drug cartel trafficking methamphetamine and cocaine was using popular cryptocurrency exchange Binance to launder $15-40 million in profits illicit.

RJ Sangosti | Getty Images

Forbes, citing a search warrant, reported that the DEA launched an investigation into the cartel's use of Binance in 2020, ultimately leading to the arrest of Mexican citizen Carlos Fong Echavarria. , who pleaded guilty to money laundering and drug trafficking. Binance reportedly cooperated with the investigation, helping to identify an additional, still anonymous, account holder who allegedly purchased nearly $42 million worth of cryptocurrencies through the platform.

Matthew Price, Senior Director of Investigations at Binance, told Forbes that blockchain is key. "This is actually an example of where blockchain transaction transparency works against criminal actors," he said. "The bad guys leave a permanent record of what they do."

Reuters has reported that Binance itself may be subject to a US Department of Justice (DOJ) investigation, but a company spokesperson said questions about any type of investigation by the DOJ were "fueled by false innuendo".

Drug cartels and other criminal organizations are increasingly turning to cryptocurrencies to launder their illicit profits. Cryptocurrencies can facilitate the transfer of large sums of money across borders and hide the origin of funds. However, cash remains the preferred method of payment for most criminals. Although the use of cryptocurrencies in illegal activities is a growing concern, most crypto transactions remain legal and legitimate.

These friends use an underrated strategy to launch a parallel deli that's on track to make at least $80,000 in December

I'm the editor of Business News, and I even fell victim to an online scam that cost me $300

Switching to a 4-day work week sounds like a great idea. But could it actually make the exhaustion worse?

What is Lensa AI? And does it raise privacy and ethical issues?