The analytical company Chainalysis reported that it was able to track the movement of $2.8 billion worth of bitcoins by criminals to the cryptocurrency exchanges Binance and Huobi.
According to Chainalysis researchers, the most popular exchanges for laundering criminal funds were the platforms Binance and Huobi. In 2019, 27.5% of funds obtained by criminal means were transferred to the Binance exchange, and 24.7% were transferred to Huobi.
“Although cryptocurrency exchanges have always been a popular way to launder money, since the beginning of 2019, the share of trading platforms has constantly increased. For the entire year, we tracked $2.8 billion in bitcoins that were transferred by criminal organizations to cryptocurrency exchanges, ” Chainalysis reported.
At the same time, the researchers note that the bulk of funds is accepted by a small group of wallets. In 2019, the wallets of two exchanges received more than $100 billion in bitcoins, and the same accounts received illegal money. 810 huobi and Binance wallets accepted 75% of the funds received on the exchanges.
“In total, more than 300,000 wallets on the Binance and Huobi exchanges received funds from criminal sources in 2019,” the researchers noted, adding that large wallets on cryptocurrency exchanges are usually owned by over – the-counter brokers.
Chainalysis stressed that cryptocurrency exchanges have procedures for identifying users, but these requirements may be lower on OTC platforms. This is why criminals often use OTC platforms to launder money.
Moreover, some such companies specialize in laundering cryptocurrencies obtained by criminal means. At the same time, according to Chainalysis researchers, out of 100 OTC brokers that provide such services, 70 operate on the Huobi exchange.
According to the head of Binance’s compliance Department, Samuel lim, in accordance with the requirements of regulators, the platform is constantly improving its procedures for identifying users and countering money laundering.
Earlier, Chainalysis researchers reported that plustoken pyramid managers have already sold 25,000 BTC, but they still have 20,000 BTC at their disposal, which are distributed to more than 8,700 addresses.