Chainalysis, a platform offering comprehensive cryptocurrency investigation and transaction monitoring solution, has denied Udi Wertheimer’s claim that it threw its “biggest client Binance under the bus” by claiming the exchange has the highest receiver of illicit bitcoin.
A surprising blog post last week, by Chainalysis tagged “Money Laundering in Cryptocurrency: How Criminals Moved Billions in 2019”, culled from the firm’s 2020 Crypto Crime Report that’s to be fully released in late in January 2020, detailed how loads of illicitly-gained cryptocurrency are being moved and stored in different cryptocurrency wallets.
The excerpt of the report highlighted how exchanges like Binance and some others have benefited from the shares of the illicit funds since the beginning of 2019.
Throughout 2019, Chainalysis said it traced $2.8 billion in Bitcoin that moved from criminal entities to exchanges.
According to the blog post, over 50 percent of this illegal fund were moved to Binance and Huobi.
“Binance and Huobi lead all exchanges in illicit Bitcoin received by a significant margin,” the blog post points.
Chainlaysis said it was surprised “given that Binance and Huobi are two of the largest exchanges operating, and are subject to KYC regulations.”
Before Chainalysis shared the excerpt of the report, the transparency platform sought the opinion of Binance, and interestingly the exchange’s Chief Compliance Officer Samuel Lim showed they remained committed to cleaning the cryptocurrency space of rogue.
“We will continue to improve on our proprietary KYC and AML technology, as well as the third-party tools and partners we work with, to further strengthen our compliance standards,” Samuel was quoted to have said.
Response from Crypto Expert on Chainalysis Report
The report caught the cryptocurrency space in awe, resulting in Udi positing that naming Binance as the “number one receivers of illicit bitcoins, reflects that blockchain transparency platform Chainalysis is no true friend of Binance.
Debunking the claim, Chainalysis stated that that the purpose of its crypto research report, wherein Binance was mentioned as one of the largest recipients of illicit funds, was fashioned to shine a glistering light on illicit activities while also actively encouraging the efforts of the law enforcement and exchanges like Binance to make cryptocurrency safer for people’s use.
The blockchain security analysis platform importantly remarked that its reports on money laundering revealed a network of corrupt over the counter brokers and not geared towards smearing the integrity and the good name of Binance, which it called a “long standing partner.”
“We strongly support market leaders like binance who use our data to improve the quality of this space for everyone,” Chainalysis concluded.