We have previously mentioned on the Arab Bitcoin website a topic entitled:

Report: Binance and Huobi Help Bitcoin and Crypto Criminals Launder Billions of Dollars of Money

Binance and Huobi have been accused of helping cybercriminals evade the grasp of law enforcement agencies and helping them launder their suspicious money.

Changpeng Zhao, CEO of Binance, responded on Twitter to recent reports accusing Binance.

In a Chainalysis report dated January 15 it was stated that Binance received nearly a quarter of all cryptocurrencies laundered through OTC brokers in 2019.

Although Chainalysis primarily blamed OTC brokers who initially sent laundered funds to the exchanges, he added that the exchanges should do more to prevent money laundering.

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The company wrote in its report:

We also call on trading platforms to do more due diligence on OTC brokers and other overlapping services running on their platform.

Changpeng Zhao replied:

Zhao responded to Chainalysis by criticizing the company’s for-profit approach to data sharing, noting that exchanges must pay to access data related to illicit activity.

Zhao added that the report could violate Chainalysis’ promises of client confidentiality.

He added that the analytics firm should publish raw data on illicit transactions rather than issue bad press releases about its clients.

Meanwhile, Chainalysis stated that the report aims to “encourage the good work of exchanges” that stop illicit activity.

They stated that the report “was not targeting Binance in particular”, and they considered Binance a “old partner”.

Transparent Analytics:

Zhao asked how Chinalysis’ transparent analysis system would work.

Some analytics companies like Slowmist offer a comprehensive list of past attacks.

In addition, some certified explorers, such as Etherscan, flag illegal transactions.

The raw data is unlikely to be useful unless a service such as Data Analytics interprets and analyzes that data to further clarify and interpret the numbers.

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Since the data must be personalized to each customer, those customers must normally pay for the service.

This also means that most of the large blockchain analytics companies – including Chainalysis, Ciphertrace and Elliptic – publish occasional public reports rather than provide live data to the public.

It remains to be seen if this trend will change over time.

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