Key Highlights
- According to its plans, Binance unveiled a global law enforcement training program to prepare worldwide government agencies to catch crypto criminals.
- The world’s largest crypto exchange works with law enforcement to track and trace suspicious accounts and fraudulent activities.
- It is looking to tamp down on terrorism financing, ransomware, child pornography, human trafficking, and financial crimes using crypto.
The action of Binance comes after the FBI recently warned investors of the risks decentralized finance (DeFi) platforms face from hackers and after the US Treasury issued a report laying out a detailed plan to combat the use of crypto for financial crimes, like money laundering and terrorism financing.
According to blockchain analytics firm Chainalysis, Crypto losses from hacks have surged in 2022, with more than $202 million stolen in August in addition to the $1.9 billion of investor funds lost through the end of July, a 37% increase from last year.
Since November 2021, the Binance investigations team has responded to over 27,000 law enforcement requests. To meet that demand, Binance is building a team, including former government officials from around the world, to conduct more training and work hand-in-hand with regulators here and abroad.
Matt Price, senior director of investigations for Binance, says he is regularly in touch with the FBI, Secret Service, Homeland Security, IRS, and Justice Department on cases, passing information back and forth.
Price, who was also a special agent with the IRS criminal investigation cyber crimes unit in Washington, said that when he was working these cases on the government side, being able to pick up the phone and know as an investigator in the government that he can contact someone in the industry for help on working a hack would have helped him take action very quickly.
That is where these public-private partnerships come in. It is that ability to share information back and forth.
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