Bitcoin Exchange Binance Collaborates with Ukrainian Police to Take Down Cybercrime Gang
Bitcoin exchange Binance recently revealed its successful collaboration with Ukrainian police in dismantling a cybercrime gang responsible for laundering $42 million in cryptocurrencies. The operation, which was first reported by the Cyberpolice of Ukraine in June, resulted in the arrest of three individuals from the Poltava region. These individuals are accused of laundering the illicit funds through 20 online cryptocurrency exchanges between 2018 and 2019.
During the raid, law enforcement officials seized over $200,000 worth of computer equipment, weapons, ammunition, and cash. This joint effort between Binance, its Binance Sentry security team, and Security Data Science analytics arm marked a significant milestone in combating financial crimes in the digital currency space.
The “Bulletproof Exchanger” Project
The collaboration between Binance and Ukrainian authorities, known as the “Bulletproof Exchanger” project, was initiated in early 2020. The Security Data Science team at Binance was tasked with identifying transactions involving high-risk entities, particularly so-called “bulletproof exchangers.” These platforms often facilitate cash-out points for cryptocurrency operations associated with financial crimes and fraud.
According to Binance, bulletproof exchangers have lax know-your-customer (KYC) and anti-money laundering (AML) policies, making them ideal targets for illicit activities. Through a partnership with Blockchain analytics firm TRM Labs, Binance conducted extensive data analysis to pinpoint entities engaging in large transaction volumes linked to ransomware attacks, exchange hacks, and darknet-related activities.
Crucial Evidence for Investigation
The insights gleaned from Binance’s big data analysis provided Ukrainian law enforcement with crucial evidence to advance their investigation. As the case remains ongoing, the collaborative efforts between Binance, TRM Labs, and the Cyberpolice of Ukraine have significantly accelerated the detection and prosecution of individuals involved in financial crimes within the digital currency market.
Police chief Oleksandr Hrynchak emphasized the importance of such partnerships in combating cybercrimes that involve funds obtained from hacker attacks, malware distribution, and theft from international companies and individuals. The joint effort between Binance and Ukrainian authorities underscores the commitment to enhancing cybersecurity measures and safeguarding the integrity of the digital currency ecosystem.