Binance helps Taiwan solve $6.2M crypto fraud

Working with Binance, Taiwan prosecutors pieced together the evidence, resulting in the indictment of nine individuals for financial crimes, including money laundering and fraud.

The Financial Crimes Compliance (FCC) Department of Binance has joined forces with Taiwan’s Ministry of Justice Investigation Bureau and the Taipei District Prosecutors Office to tackle a large-scale money laundering case, resolving a 200 million New Taiwan dollars ($6.2 million) virtual asset fraud.

As revealed in the official statement, the operation facilitated criminals in washing illegal proceeds through cryptocurrency transactions. The scammers employed fake remittance documents, counterfeit identification information, and manipulated customer communication records to evade detection by law enforcement

Through collaborative efforts with Binance, Taipei District Prosecutors Office prosecutor Lo Wei-yuan unraveled the threads and pieced together the full picture of the suspicions on nine indicted individuals, charged with offenses including money laundering, fraud, and organized crime in accordance with relevant regulations and laws.

The release noted,

“Upon receiving the request, Binance set up a cross-border online meeting with the investigating officers and prosecutors to discuss the collaborative strategy.”

Binance has implemented measures and efforts beyond standard compliance, actively cooperating with law enforcement agencies worldwide. This includes their industry’s first training program for law enforcement, a coordinated effort worldwide to help law enforcement and prosecutors detect financial and cybercrimes and assist in prosecuting bad actors.

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Binance has made a notable name for itself within Taiwan. Last year, it applied to be registered under Taiwan’s Financial Supervisory Commission (FSC) and Money Laundering Control Act. Local regulatory bodies have previously recognized the exchange’s collaborative efforts in assisting with investigations into virtual asset fraud.

Additionally, the firm demonstrated its commitment to supporting law enforcement by hosting a virtual asset law enforcement training workshop for officers from the Keelung District Prosecutors Office in Taiwan in March, sharing its expertise to combat virtual asset-related crimes.

Meanwhile, regulators in Taiwan are looking to introduce cryptocurrency regulations by the end of 2024. Huang Tianzhu, the chairman of the Financial Supervisory Commission (FSC), has raised concerns about illegal activities powered by cryptocurrencies and plans to bolster its oversight of crypto exchanges and impose penalties.

The proposed law would make foreign cryptocurrency platforms risk criminal penalties unless they establish local firms and seek AML registration.

Taiwan’s Ministry of Justice recently proposed amendments to existing AML laws that could impose jail terms of up to two years for noncompliant firms and fines of up to $1.5 million. The amendments aim to strengthen the crackdown on fraud and strictly regulate money laundering prevention measures for crypto service providers.