According to an official Binance blog post: In a major breakthrough, Indonesia's Criminal Investigation Agency (Bareskrim) successfully disrupted a large-scale crypto scam with the assistance of Binance and Tokocrypto. This joint operation resulted in the identification of multiple suspects and the seizure of $200,000 in stolen funds, highlighting the effectiveness of public-private cooperation in tackling financial fraud.
Uncovering a Crypto Fraud Operation
The investigation began in November 2023 when Bareskrim launched a probe into a suspected trading fraud involving a crypto trading website. The investigation uncovered that the site was part of a broader “pig butchering” scam, where scammers lure victims with promises of high returns before stealing their investments.
During the operation, authorities arrested several individuals involved in managing accounts that held stolen funds. They seized around 50 mobile devices, numerous local bank cards, and apps connected to the fraudulent transactions. However, the suspects initially refused to provide details about the cryptocurrency wallets they controlled.
Bareskrim investigators, aided by forensic analysis, identified key wallet addresses associated with the scam. Through communication records, particularly on Telegram, further links between the suspects and the fraud operation were established.
The Role of Binance and Tokocrypto
Recognizing the complexity of the cross-border cryptocurrency transactions, Bareskrim turned to Tokocrypto for assistance, which subsequently involved Binance’s Financial Intelligence Unit (FIU). The FIU provided critical insights and support, helping authorities trace the illicit funds. Binance's team was instrumental in the freezing of assets and the successful seizure of $200,000 from the suspects’ accounts.
Nils Andersen Röed, Head of Binance FIU, emphasized the importance of collaboration in fighting financial crime: “By maintaining open communication channels with global law enforcement agencies, we were able to connect with Bareskrim and take valuable action. This cooperation enabled us to effectively track and seize illicit funds, ensuring a secure and trustworthy cryptocurrency ecosystem.”
Impact and Ongoing Investigations
The operation underscores the success of public-private partnerships in combating crypto-related crimes. Bareskrim investigator Ferry Maulana noted, “The success of this operation demonstrates our commitment to fighting financial fraud and protecting the public. Our partnership with Binance FIU and Tokocrypto was key in unraveling the complexities of this case and bringing the perpetrators to justice.”
Tokocrypto’s VP of Legal, Compliance & Government Relations, Azizah Mutia Karim, highlighted the importance of continued cooperation, stating, “We are fully committed to working alongside law enforcement agencies and partners like Binance to ensure the safety of the crypto assets ecosystem. This case demonstrates the power of collaboration in exposing fraudulent activities and protecting the public.”
The case remains ongoing as authorities pursue additional leads uncovered during the investigation.
Binance’s Broader Commitment to Law Enforcement
Binance has been a key player in collaborating with law enforcement agencies globally to enhance security in the cryptocurrency space. In 2023 alone, Binance's FIU processed 58,000 law enforcement requests, up from 50,000 in 2022. The company’s Government Law Enforcement Request System has facilitated over 12,000 registered law enforcement officers worldwide, showcasing Binance’s commitment to protecting users from fraud and ensuring a secure crypto environment.