Binance, the world’s largest crypto exchange by volume, has reacted to allegations of money laundering made by Reuters.
Reuters, an international news agency and one of the largest news agencies in the world, published an article on Monday, alleging that Binance has been a “hub for hackers, fraudsters and drug traffickers,” stating that at least “$2.35 billion in illicit funds,” have been laundered within the exchange.
Binance addressed the allegations in a blogpost stating that the allegations are not only untrue but are also attempts by certain interested parties to “mislead the general public” by spreading disinformation. After this response, Binance CEO, popularly known as ‘CZ’, took to Twitter to share his thoughts.
What CZ is saying
CZ took to Twitter to state, “The facts are clear. According to Chainalysis, just 0.15% of ALL crypto transactions in 2021 were associated with some type of illicit activity. The UN estimates 2-5% of fiat (cash), worth $800B to $2T, was associated with some type of illicit activity. Let’s be real.
- “The Reuters article yesterday is a huge waste of time and resources. This is the last I’ll say on it, and the last our team will interact with the writer. The author continues to wear it as a badge of honor on Twitter when his fiction pieces get fact-checked after he publishes.
- “We’re not perfect. We’ve made mistakes in the past, just as you’d expect from a young company operating in a disruptive new industry. But that doesn’t give them the right to ignore their obligations to tell an objective story. It doesn’t even have to be balanced. Just fair.
- “As policymakers continue to debate how this industry should be regulated, we will do our part by responding to every inquiry, supporting law enforcement wherever possible, and owning up to our mistakes. I talk with 5-10 journalists every week. I sometimes disagree with how journalists cover us or a specific aspect of our industry. That’s ok. Most are looking to write an objective story.
- “External criticism is healthy. It would be far more concerning if there wasn’t any criticism. Just needs to be fair and on the up and up. If you haven’t read our email exchange with Reuters before that article was released, I encourage you to. Journalism is extremely important for our industry. But together we should stand for fair reporting so crypto gets proper, accurate coverage.”
What you should know
- The Reuters report stated that Binance processed transactions totalling at least $2.35 billion stemming from hacks, investment frauds and illegal drug sales.
- Reuters stated that their calculations were gotten from an examination of court records, statements by law enforcement and blockchain data, compiled for the news agency by two blockchain analysis firms. Two industry experts reviewed the calculation and agreed with the estimate.
- The article also noted that the flow of illicit crypto through Binance represented a small portion of the exchange’s overall trading volumes.
