Exchanges

Binance accused of money laundering $9 million

  • Binance’s “lax” previous rules allowed thieves to launder through the platform
  • Fisco, owner of hacked Zaif, is accusing Binance of having allowed $9 million to be laundered
  • Fisco also stated that Binance received 27.5% of over $2B worth of illicit crypto

The Hack

Back in 2018, a regulated Japanese cryptocurrency exchange, Zaif, was hacked. The attackers had unauthorised access to the hot wallets and stole 6,000BTCs, of which was some BCH and MONA. At the time, the damage was worth over $60 million, of which $44 million belonged to customers. Some of these customers, were from the United States.

The Lawsuit

Fisco, the owner of Zaif, is suing Binance for allowing the laundering of stolen cryptocurrencies and this is taking place in the Northern District of California, San Jose. This is where Fisco is attacking Binance’s “lax” exchange rules that allowed such thing to take place.

Forensics

One of the main features of Bitcoin, is traceability. This is what Fisco is basing their main argument on. They are stating that after the hack, the funds were all traced back to a single Bitcoin address which is this one: “1FmwHh6pgkf4meCMoqo8fHH3GNRF571f9w”. Out of that address, 1,451.7 Bitcoins were sent to “1NDyJtNTjmwk5xPNhjgAMu4HDHigtobu1s”. This last address is what they’re stating belongs to the crypto-exchange Binance.

The story is still developing and Binance is yet to comment on the matter, updates will follow.

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