<p>Despite the strong anti-money laundering (AML) procedures that Binance claims to have established, blockchain data shows that tens of millions of dollars moved through Bitzlato eventually wound up in Binance deposit wallets.</p><p>On Wednesday, federal prosecutors unsealed an indictment against Bitzlato, a little-known crypto exchange, accusing it of aiding the laundering of $700 million in corrupted cryptocurrency linked to the now-defunct <a href="https://micky.com.au/germanys-cybercrime-unit-shuts-down-hydra-market-seizes-543-bitcoins-worth-us25m/" rel="noopener noreferrer nofollow">dark-web market Hydra</a>, as well as millions more in ransomware earnings.</p><h2 id="header-0">Binance AML procedures in question</h2><p>The movement of Bitzlato’s assets calls into doubt Binance’s AML measures since it was listed as Bitzlato’s largest counterparty in a <a href="https://www.fincen.gov/sites/default/files/shared/Order_Bitzlato_FINAL%20508.pdf" rel="noopener noreferrer nofollow">FinCEN report</a> from Wednesday.</p><p>In total, the five largest Bitzlato-connected wallets contributed more than $30 million to Binance directly. Millions more in smaller transactions eventually made their way into Binance’s wallets.</p><h2 id="header-1">Not so robust?</h2><p>Changpeng Zhao, CEO of Binance, has frequently lauded his exchange’s robust initiatives to restrict the flow of illicit cash on the network. Binance revealed earlier this week that it has confiscated cryptocurrency valued at millions of dollars linked to the Harmony hacking gang from North Korea.</p><p>The biggest cryptocurrency exchange in the world, Binance, has not been linked to any criminal conduct, and officials have not charged it with willfully taking illegal cash. The Department of Justice is reportedly conducting a <a href="https://www.reuters.com/markets/us/us-justice-dept-is-split-over-charging-binance-crypto-world-falters-sources-2022-12-12/" rel="noopener noreferrer nofollow">separate criminal investigation</a> into the exchange’s adherence to AML regulations.</p>

Money launderers have managed to bypass Binance AML procedures

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