FinCEN lists Binance among the top Bitcoin counterparties of Bitzlato

The United States Financial Crimes Enforcement Network (FinCEN), a bureau of the Treasury Department, has argued that Binance is linked to the amerciable cryptocurrency level Bitzlato.

In an bid published connected Jan. 18, FinCEN stated that Binance cryptocurrency speech was among the “top 3 receiving counterparties” of Bitzlato successful presumption of Bitcoin (BTC) transactions.

According to the authority, Binance was among the biggest counterparties that received Bitcoin from Bitzlato betwixt May 2018 and September 2022. Other specified counterparties included Russia-connected darknet marketplace Hydra and the alleged Russia-based Ponzi strategy known arsenic “TheFiniko,” FinCEN noted.

On the different hand, FinCEN did not notation Binance arsenic the apical 3 sending counterparties successful the order. According to the document, the biggest Bitcoin senders to Bitzlato betwixt May 2018 and September 2022 were Hydra, Finland-based speech LocalBitcoins and TheFiniko.

“Approximately two-thirds of Bitzlato’s apical receiving and sending counterparties are associated with darknet markets oregon scams,” FinCEN wrote successful the order. Between 2019 and 2021, Bitzlato received crypto worthy $206 cardinal from darknet markets, $224 cardinal from scams, and $9 cardinal from ransomware attackers, the bureau noted.

The quality comes amid aggregate U.S. authorities initiating large enforcement enactment against Bitzlato, accusing the steadfast of wealth laundering and allegedly facilitating circumvention of sanctions against Russia. As portion of the lawsuit against Bitzlato, the Federal Bureau of Investigation arrested Bitzlato laminitis Anatoly Legkodymov connected Jan. 17 successful Miami.

Unlike large crypto exchanges similar Binance oregon Coinbase, Bitzlato was a little-known cryptocurrency service. Founded successful 2016, the level reportedly has an bureau successful the Federation Tower skyscraper successful Moscow, wherever it accepted transactions of $100,000 oregon more.

The alleged engagement of Binance successful Bitzlato’s lawsuit seemingly raises immoderate concerns astir the exchange’s operations and imaginable ties with Russia. As antecedently reported, Binance was among exchanges that opted to proceed to service non-sanctioned Russians aft the European Union adopted the eighth sanctions bundle against the country.

Related: Binance registers arsenic virtual plus work supplier successful Poland

Addressing Cointelegraph’s petition for remark regarding FinCEN’s notation to Binance successful Bitzlato’s case, a spokesperson for Binance said that the steadfast has been collaborating with regulators, stating:

"Binance is pleased to person provided important assistance to planetary instrumentality enforcement partners successful enactment of this investigation. This exemplifies Binance’s committedness to moving collaboratively with instrumentality enforcement partners worldwide."

FinCEN did not instantly respond to Cointelegraph’s petition for comment.