Due to the anonymity provided by cryptocurrencies, they allow cartels a perfect means to transfer funds across continents in a relatively safe manner. To identify individuals, it is necessary to analyze the chain of command.
As a result of its widespread use by threat actors to wash funds from crypto markets, Tornado Cash has been sanctioned by the US Treasury for being used as a crypto mixing tool. Following the sanctions, threat actors are no longer able to operate through their usual routes, including through centralized exchanges.
Drug cartels are under attack by the DEA
Forbes published an article about the gang that indicated that it operated in several countries, including the United States, Europe, Mexico, and Australia. Based on the DEA's report, it appears that the cartel was channeling as much as $40 million of illicit proceeds through the exchange.
Using Localbitcoins, informants were able to interact with perpetrators trading crypto for fiat in 2020, which led to investigations into the crime and communication with authorities.
To ensure trust between trading parties, Localbitcoins uses an escrow service to ensure both parties are given a fair chance to make a transaction.
Carlos Fong Echavarria, a Mexican citizen responsible for the theft, assured them the money came from family restaurants and cattle ranches.
In the aftermath of Echavvaria's capture, he pleaded guilty to charges of drug possession and money laundering. As the matter awaited sentencing, a blockchain address was tracked by the DEA. According to one of them, there is still money being laundered.
One of the latest perpetrators recently bought $42 million in crypto and sold $38 million in crypto. Some of these funds are believed to be linked to the trafficking of drugs, according to authorities.
The Binance versus the money laundering issue
During the most recent attack, BNBc tokens worth trillions of dollars were obtained via an exploit of the ANKR protocol. BNP and BUSD were exchanged for some of the proceeds, then transferred to the exchange. As a result of the incident, the Exchange reacted by freezing the associated accounts. The company ANKR has determined that the perpetrator of the crime was a former employee of their own company.
There was a data breach earlier this month by Lazarus Group, a North Korean cybercrime group. This breach may have led to a loss of more than $540 million from the Ronin Axie Infinity ecosystem.
It appears that Lazarus also moved the stolen funds to Tornado Cash and several other exchanges. Through a collaborative effort, Chainalysis, law enforcement authorities, and the leading cryptocurrency exchange reverse-engineered the transaction trail. They also froze about $5.8 million in crypto assets linked to this crime as a result of this discovery.
Following a collaboration between Russian law enforcement and the exchange, Hydra, a darknet marketplace for Russians on the internet, has been shut down. According to earlier reports in the media, it had been reported that Hydra had received funding from the exchange. In its statement, Binance stated that law enforcement would not have been able to capture the criminals behind the Hydra case if it weren't for cryptocurrency.
A report by Binance indicated that the company had spent tens of millions of dollars hiring sophisticated cybersecurity specialists from across the globe. More than 120 security and industry experts comprise the team. These experts include former members of the IRS, FBI, the US secret service, Europol, and police agencies in the U.K., Europe, Asia, and Latin America. In addition, former members of the US secret service.
Throughout the history of cryptocurrencies, critics have portrayed them in a bad light. This is because they view them as a disruptive technology that will revolutionize global finance, as well as global crime.
To ensure that the industry is under the control of the authorities, strict regulations have been published.
Binance has proved that blockchain is a valuable tool to use in the fight against cyber law-breaking, as evidenced by its success in this field. Several industrial applications have been demonstrated using the technology, including preventing forgery and enhancing procurement processes.
There is no anonymity in crypto, centralized exchanges may be able to identify the owners of the addresses. As a user or individual with a majority stake in a blockchain ecosystem and a much-acclaimed proof-of-stake coin, one can rely on their power to lock out funds on the blockchain and ultimately lock users out of their funds.
