Binance has announced on its blog that the company's Financial Crimes Compliance (FCC) department collaborated with Taiwan's Ministry of Justice Investigation Bureau and the Taipei District Prosecutors Office to dismantle a cryptocurrency-backed money laundering scheme. The case reportedly involves approximately NT $200 million (U.S. $6 million).
In a recent blog post, Binance revealed that last month, authorities indicted nine suspects on charges of aggravated fraud and violation of the Money Laundering Control Act and organized crime prevention regulations. The investigation is spearheaded by Prosecutor Lo Wei-yuan of the Taipei District Prosecutors Office, but Binance has played a crucial role in terminating the scheme.
"We would like to thank Binance for its long-term active cooperation with Taiwanese law enforcement agencies and for providing professional assistance and crucial intelligence in this case. It allowed our investigation team to further unravel the threads and piece together the full picture of the crime, ultimately bringing the suspects to justice," Wei-yuan was quoted as saying in the post.
The blog post also shed light on how operators allegedly aided scam groups in laundering money using digital assets. They reportedly created false customer conversation records, remittance proofs, and forged identity verification data. Armed with this fraudulent information, they impersonated individual cryptocurrency merchants to move funds.
As per Binance's blog post, these activities caught law enforcement’s attention. Investigators traced multiple transactions and requested related data from Binance and other stakeholders. Discussions about the case took place virtually between Binance and investigators—with Binance providing cryptocurrency flow analyses to identify the alleged suspects—and a collaborative strategy was formed.
"Our cooperation with Taiwan law enforcement reaffirms Binance's strong commitment to combating financial crime and safeguarding the Web3 ecosystem. We will continue to uphold this goal and deepen our cooperation with global law enforcement agencies," Damien Ho, a representative of Binance's APAC region, was quoted as saying in the blog post.