The US Drug Enforcement Agency (DEA) has reportedly seized $1.8 million from Binance, one of the world’s largest cryptocurrency exchanges. According to sources, the seizure took place in 2022 as part of a larger operation against a drug trafficking organization that used Binance to launder money.
The DEA allegedly discovered that the drug trafficking organization was using Binance to convert proceeds from drug sales into cryptocurrency, which was then sent to multiple wallet addresses to conceal its origin. The agency was able to track down the funds and seize them from Binance.
This is not the first time Binance has come under scrutiny from US authorities. In 2021, the Commodity Futures Trading Commission (CFTC) and the Department of Justice (DOJ) reportedly launched investigations into Binance’s business practices. Binance has also been banned or restricted in several countries, including the UK, Japan, and Canada.
Binance has not yet commented on the DEA seizure, but the incident highlights the ongoing concerns around the use of cryptocurrency for illicit activities such as money laundering and terrorist financing. Cryptocurrency exchanges and other service providers have come under increased regulatory scrutiny in recent years, with many countries implementing stricter rules and regulations.
The seizure also highlights the need for stronger Know Your Customer (KYC) and Anti-Money Laundering (AML) measures within the cryptocurrency industry. Many exchanges, including Binance, have implemented KYC and AML procedures in recent years, but there are concerns that these measures may not be sufficient to prevent criminal activity.
As the cryptocurrency industry continues to grow and mature, it is likely that regulatory scrutiny and enforcement actions will increase. Cryptocurrency service providers will need to work closely with regulators to ensure they are meeting their obligations and preventing illicit activity on their platforms.