Binance’s Financial Crimes Compliance (FCC) department has partnered with Taiwan’s Ministry of Justice Investigation Bureau and the Taipei District Prosecutors Office to address a significant case of money laundering, successfully resolving a $6.2 million digital asset fraud. The criminals involved used cryptocurrency transactions to launder illegal proceeds, employing fake remittance documents, counterfeit identification information, and manipulated customer communication records to avoid detection by law enforcement.
Binance, in a statement given to Cointelegraph, did not directly mention the specific case but acknowledged that it had been reported in the media. The company revealed that the operation involved falsified documentation, including “fake customer conversation records” and forged identity verification data, creating the illusion that individual merchants were moving funds amounting to nearly $6 million.
Through collaborative efforts with Binance, prosecutor Lo Wei-yuan from the Taipei District Prosecutors Office was able to piece together the complete picture of the suspicions surrounding nine indicted individuals. The charges against them include money laundering, fraud, and organized crime.
Binance highlighted its commitment to going beyond standard compliance by actively cooperating with law enforcement agencies worldwide. The company has even developed the industry’s first training program for law enforcement, aiming to assist in the detection and prosecution of financial and cybercrimes.
In 2023, Binance applied to be registered under Taiwan’s Financial Supervisory Commission (FSC) and Money Laundering Control Act. Local regulatory bodies have previously recognized the exchange’s collaborative efforts in assisting with investigations into digital asset fraud.
In March, Binance hosted a virtual asset law enforcement training workshop for officers from the Keelung District Prosecutors Office in Taiwan, sharing its expertise to combat crimes related to digital assets.
Meanwhile, Taiwan regulators are planning to introduce cryptocurrency regulations by the end of 2024. Chairman Huang Tianzhu of the FSC has expressed concerns about cryptocurrencies being used for illegal activities and intends to strengthen oversight of crypto exchanges and impose penalties.
Under the proposed law, foreign cryptocurrency platforms would face criminal penalties unless they establish local branches and comply with Anti-Money Laundering (AML) regulations.
Taiwan’s Ministry of Justice has recently proposed amendments to existing AML laws, which could result in noncompliant firms facing jail terms of up to two years and fines of up to $1.5 million. These amendments aim to enhance the crackdown on fraud and rigorously regulate money laundering prevention measures for crypto service providers.