Binance helps Taiwan solve $6.2M crypto scam
Update (May 17, 12:30 PM UTC): This article has been updated to include comments from Binance exclusive to Cointelegraph. Additional reporting by Derek Anderson.
Binance's Financial Crimes Compliance (FCC) Division has teamed up with the Taiwan Ministry of Justice's Bureau of Investigation and the Taipei District Prosecutor's Office to solve a major money laundering case involving a 200 million New Taiwan Dollar ($6.2 million) digital asset fraud. .
According to an official statement, the operation facilitated criminals to launder illegal earnings through cryptocurrency transactions. The fraudsters used false transaction documents, false identification information and customer contact records to avoid detection by law enforcement.
In a statement to Cointelegraph, Binance said the operation was reported in the media, but was careful not to reveal the issue in question. According to Binance, the operation leaked documents including “fake customer chat logs.” […] and falsified identity verification information”, to find that each of the traders was moving a total of about NT$200 million (about US$6 million).
In collaboration with Binance, Lo Wai-yuan, a prosecutor at the Taipei District Prosecutors Office, compiled a full picture of the suspicions of nine individuals accused of crimes including money laundering, fraud and organized crime.
The release reads:
“Upon receiving the request, Binance organized a cross-border online meeting with investigative officers and prosecutors to discuss its cooperation strategy.”
Binance actively cooperates with law enforcement agencies worldwide and implements measures and efforts that go beyond standard compliance. This includes the industry's first law enforcement training program – a coordinated effort to help law enforcement and prosecutors worldwide identify financial and cybercrimes and prosecute bad actors.
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In 2023, Binance applied to register with Taiwan's Financial Supervisory Commission (FSC) and Money Laundering Control Act. Local regulatory bodies have already acknowledged the exchange's collaborative efforts to help investigate digital asset fraud.
Additionally, in March, Binance hosted a virtual property law enforcement training workshop with officials from the Kieng District Prosecutor's Office in Taiwan, sharing its expertise in combating digital asset-related crimes.
Meanwhile, regulators in Taiwan are looking to introduce cryptocurrency regulations by the end of 2024. Huang Tianzhu, chairman of the FSC, is concerned about cryptocurrencies being used for illegal activities and plans to strengthen regulation of crypto exchanges and impose fines.
The proposed legislation would mean foreign cryptocurrency platforms would risk criminal penalties if they set up local branches and fail to comply with anti-money laundering (AML) regulations.
Taiwan's Ministry of Justice has proposed amendments to existing AML laws, which could result in up to two years in prison for illegal organizations and fines of up to $1.5 million. The amendments aim to strengthen action against fraud and strictly control anti-money laundering measures for crypto service providers.
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