Key takeaways
Building on its status as a leader in the crypto sector, Binance is proud to fulfill its duty to strengthen the security and integrity of the digital asset ecosystem.
As part of its robust compliance program, Binance has established a Financial Crime Compliance (CCF) team comprised of the industry's top investigators, blockchain analysts, and former law enforcement officials.
Discover the daily life of those responsible for fighting financial crime at Binance, from the mouths of the investigators themselves.
A gigantic criminal operation orchestrated from Thailand defrauded thousands of people, extracting millions of dollars from them using a hybrid scam combining the characteristics of romantic scams and fake investments: “pig butchering”. The crooks led a lavish lifestyle: sports cars, luxurious villas... They managed to escape the vigilance of the authorities until that fateful day in 2023, when the police came to knock on their door and put an end to their misdeeds . The downfall of this criminal group was caused by the presence of part of their transactions on the blockchain, which allowed Binance detectives to follow their trail, only to let the Royal Thai Police do their job.
Public blockchains are transparent in nature, and transactions on the blockchain are easily traceable. These properties of digital assets have given rise to a new area of financial intelligence and investigation: tracking the movement of funds on the blockchain. Binance employs the most talented people and leverages the best technology in this emerging sector to combat crimes involving digital assets. These tools are also used to collaborate and share the company's expertise with law enforcement agencies around the world to protect users and thwart the plans of malicious actors across the ecosystem. blockchain. The “pig butchering” case in Thailand is just one example of thousands of such partnerships, which have produced remarkable results.
Financial Crime Compliance at Binance
Binance's Financial Crime Compliance (CCF) team is comprised of seasoned investigators from a variety of backgrounds, ranging from technology and banking to law enforcement and intelligence. Distributed across the globe, the CCF team plays a vital role in protecting the ecosystem from malicious actors and fraudulent activity, and leading the fight against crypto crime.
“From a strategic perspective, the team has helped Binance build a strong reputation with law enforcement as a trusted partner exchange known for going the extra mile and delivering on its security commitments. fights crime around the world to make the crypto sector safer for everyone. » – Pablo, special investigations
Being an industry leader with a unique user-centric culture, Binance exceeds industry standards to protect its users and strengthen the security of the entire ecosystem. Over the years, Binance has built one of the most successful compliance services in the industry.
To date, Binance has helped authorities freeze and confiscate crypto assets with a cumulative value of over $1 billion through public and private collaborations, in an effort to keep bad actors out of the space . In 2023, Binance's world-class CCF team responded to over 58,000 law enforcement requests, conducted 120 law enforcement workshops and training sessions, and submitted over 51,600 suspicious activity reports ( RAS) (an increase of 180% compared to 2022) involving sanctions, scams, fraud, hacking, etc.
A dynamic atmosphere
The agents of the Binance CCF team are not ordinary investigators; they are also compliance experts, who must have the capabilities and experience to balance these two areas. The CCF team’s work environment is dynamic and constantly changing, which RAS team member James agrees: “No two days are the same. New learning opportunities and new challenges to overcome are constantly emerging, and this is what makes the atmosphere within the team so exciting. »
Investigators typically focus on internal and external aspects of compliance in their daily work, and are often required to provide critical assistance to law enforcement by helping them trace leads, understand Binance records, or resolve issues. problems.
Most of the time, the request or alert is first addressed to the case team or the SAR team, who then forwards it to the special investigations team or the investigations team on sanctions, if necessary. Overall, the CCF team consists of several mobile sub-departments that all work together to protect the ecosystem.
An essential collaboration
“Collaboration is the driving force behind both our internal and external investigations. » – Akbar, special investigations
The role that the CCF team plays in Binance’s internal compliance processes is well established. She provides valuable assistance with cases and initiatives requiring further investigation in specialized areas such as sanctions, fiat currencies and transaction monitoring. Outside of Binance, the team collaborates with law enforcement agencies around the world in a multitude of areas, particularly training and solving crimes involving cryptocurrencies.
Even though data indicates that the share of crypto transactions linked to illicit actors is very small, digital assets can be used in various illegal activities whenever a transfer of money or value takes place, including fraud, money laundering, human trafficking, drug trafficking, ransomware, etc. The amount of fraudulent funds flowing through crypto channels is far less than most people think, especially compared to the number of fraudulent transactions taking place in traditional finance.
It is not uncommon for law enforcement to welcome the cooperation shown by Binance investigators, also praising their response times and their local work in the fight against this type of crime. In a discussion with Erin West, Deputy District Attorney for Santa Clara County, California, she said: “Binance and other platforms are willing to help fight fraud and will happily state that they refuse that dirty money circulates on their networks, and that they are completely against the use of their infrastructure by malicious actors for their illicit money transfers. »
Peter, member of the Special Investigations team adds: “Binance has invested considerable resources in compliance measures. Every law enforcement agency we've worked with can confirm this, and they all say they really appreciate the way we work to create a safer ecosystem. On the other hand, our status as market leader places a heavy responsibility on our shoulders and subjects us to increased surveillance from these bodies and regulatory authorities: however, it is in this aspect that we set an example by compliance, adopting measures that we hope these regulators will impose on the entire sector. »
CCF team members view their service as a force multiplier that helps crime fighters by providing relevant intelligence and expertise wherever and whenever it can turn the tide. For our investigators, one of the most rewarding aspects of their work is the recognition and appreciation of their partners, especially when they play an instrumental role in a case by recovering funds, locating kidnapping victims or helping to identify criminals.
Natasha from the Business team offers her thoughts: “Our collaborative and meticulous workplace allows us to serve our users, but not only that: we also play an important role in maintaining the integrity of the industry. Thus, each member of the team is both a guardian of the trust of our users and a representative of Binance’s mission for a more transparent and secure crypto universe. »
Investigators in action
At the forefront of the fight against cryptocurrency crime, Binance investigators must use some of the most sophisticated tools and technologies at their disposal. In particular, they use several software programs, either developed internally or purchased from external suppliers, to carry out various survey objectives. In-house software is typically used to communicate between teams, analyze transactions, and review records. External software is most often used to analyze the blockchain, collect information and visualize, then analyze the data.
The cryptocurrency market is open all the time, so the role of a Binance investigator requires you to be tireless and regularly tackle pressing issues. Charlotte, a member of the SAR team, remembers a hack of a payment service channel that occurred on a weekend when the majority of her team was off. When it learned of the breach from a fiat partner, it immediately established a task force that examined more than 90 suspicious accounts that may have received the stolen funds. Charlotte's rapid reaction was decisive in recovering these funds, and once again demonstrated the willingness of Binance investigators to act without delay in an emergency, in all circumstances.
Another big difficulty investigators face stems from one of the main advantages of cryptos: their lack of borders. Traditional law enforcement agencies are generally limited to their jurisdictions, making cross-border crimes sometimes difficult to combat. These constraints underline the essential role of effective international coordination, and the place of Binance in facilitating these efforts.
Akbar, a member of the special investigations team, recalls a notable example of successful international cooperation: the holder of a certain account had been the subject of several requests from law enforcement agencies around the world. The team analyzed its activities, transactions and history of law enforcement requests regarding this account. In addition, this person responded evasively to requests, which reinforced the teams' suspicions.
Akbar followed up on these leads and contacted the Cybercrime Investigation Bureau of the Royal Thai Police. After cross-checking the team's findings with the contents of the police database, a link was made to an ongoing investigation into a 'pig butchering' case, leading to the dismantling of a network prolific criminal in the successful operation dubbed “Trust No One.”
A passion for justice
The motivation of Binance investigators lies in their deep passion for justice. The assurance of having a positive influence on the world at the level of their sector and individuals is an extremely satisfying aspect of their job: thwarting the plans of malicious actors, disrupting criminal networks and enforcing the justice are all tasks that bring them a unique feeling of accomplishment.
“Cryptocurrency investigations are often complex puzzles. Our team thrives when it comes to gathering information to get the big picture of criminal activity. » – Akbar, special investigations
Conversely, observing the fallout from nefarious actors’ crimes is a difficult aspect of the job, one that some would happily do without. Seeing the devastating effects suffered by innocent victims can be very disheartening, which is a reminder of the importance of intelligence work.
Akbar continues: “Despite our best efforts, the sad reality is that scams still exist. Each new scam reminds us of the challenges we face, and the continued need to raise awareness and implement preventative measures. » These obstacles stand in the way of both individuals and law enforcement agencies.
Various roles and origins
Beyond the feeling of accomplishment of working for the good of the planet, many team members also cite the diversity of their team as another positive aspect of their work: the unique ideas that researchers exchange strengthen team spirit.
Binance investigators come from a variety of backgrounds, from banking and traditional finance compliance to law enforcement and intelligence in governments around the world. The US Federal Bureau of Intelligence (FBI), the Internal Revenue Service (IRS) and the Treasury Department as well as Europol (EU), the Home Office (UK), the Home Office or MHA (Singapore), Hong Kong Police Force (HKPF) are also among the former employers of CCF team members.
Before joining Binance, these world-class crime fighters participated in or led some of the largest crypto investigations, such as those into the darknet marketplace Silk Road, the Bitcoin exchange BTC-e, and the hack of Mt. Gox. Remarkably, many of them had previously worked with Binance in law enforcement before joining the company, praising Binance's extensive collaborative efforts.
“The incredible support Binance gave me during my investigations while working in law enforcement reinforced my choice to join the company. For me, it was clear that I wanted to continue my career at Binance. » – James, RAS
The future of surveys
The dynamic nature of cryptocurrencies produces one of the biggest challenges for the Binance CCF team: keeping pace with criminals and staying on top of their methods. As bad actors become more technical and sophisticated, Binance investigators must constantly refine their tools and skills to stay ahead of the curve.
Beyond the investigators themselves, these changes in crypto crime must also be explained to traditional law enforcement, which represents an additional difficulty. Users do not behave the same way in crypto markets as in traditional financial markets, which reduces the effectiveness of conventional methods and requires the adoption of new approaches.
In addition to the rapid evolution of cryptocurrency and blockchain technology, the regulations governing them are also changing. While this is ultimately a good thing for user security, it can be difficult to keep up with changing rules and regulations, especially when they affect different markets and jurisdictions. The lack of regulation often makes it difficult to punish bad actors: in the quest for justice, catching criminals is one thing, and punishing them is another.
As the crypto sector enters a new phase of development with a focus on compliance, regulatory oversight is expected to tighten, become clearer and pave the way for a harmonized global framework. The CCF team will move in this direction and continue to play a vital role in seizing this opportunity to lead by example in crypto compliance and keep the SAFU ecosystem.