Noah Perlman, Binance's chief compliance officer, said that the exchange's direct exposure to illicit actors has decreased by 96%, based on Chainalysis raw data. He added that Binance will employ broader categories in future analyses as the cryptocurrency sector evolves. Perlman made this statement on X.
"We appreciate Chainalysis' partnership and the data they've provided to support our work over the past three months," said Perlman. "Our latest analysis - conducted by our team using Chainalysis' raw blockchain data focused on direct exposure to illicit actors, one of the most consistent and reliable indicators across the industry. The results show a 96% decline. We're committed to building on this work with broader categories in future analyses as the ecosystem continues to mature."
According to independent analyses from Chainalysis and TRM Labs, there is a trend of shrinking illicit exposure across centralized exchanges, with Binance showing the most significant improvement. Between January 2023 and June 2025, Binance reduced its direct exposure to illicit flows by approximately 96% according to Chainalysis and 98% according to TRM Labs. This reduction outpaces its peers and results in the lowest ratios among major centralized exchanges (CEXs). On the top seven exchanges, direct exposure now represents only a few hundredths of one percent.
Industry-wide benchmarks highlight the importance of exposure metrics. TRM Labs' 2025 Crypto Crime Report estimates illicit crypto volume at roughly $45 billion in 2024—a decrease of 24% from 2023—even as overall transaction volume increased. The report outlines trends in sanctions evasion, scams, hacks, and ransomware, providing a reference frame for reductions in exchange-level exposure.
Binance attributes declining illicit exposure to substantial compliance investments: more than 1,280 employees—about 22% of staff—focus on user protection and regulatory engagement. Additionally, "hundreds of millions" are invested annually in Know Your Customer (KYC) and Anti-Money Laundering (AML) controls and security tools. The company considers these resources essential for market integrity and transparency, citing enhanced transaction monitoring, sanctions-screening upgrades, staff training, and partnerships with analytics firms and regulators.
Perlman's LinkedIn profile lists him as Binance’s Global Chief Compliance Officer since January 2023. His previous roles include Chief Operating Officer at Gemini and Managing Director at Morgan Stanley as Global Head of Financial Crimes. Earlier in his career, he served as Division Counsel at the Drug Enforcement Administration’s New York Division and as an Assistant U.S. Attorney for the Eastern District of New York. He holds an A.B. from Harvard University and a J.D. from Columbia Law School.