Financial Times published a report claiming that since 2021, the Binance exchange has processed suspicious transactions totaling at least $1.7 billion, with these transfers linked to 13 accounts. Journalists obtained internal documents containing KYC data, IP addresses, and transaction histories of clients from several countries, and reached out to Binance representatives for comment but received no response. The source also noted that all 13 accounts collectively received around $29 million in USDT, while one account linked to a 25-year-old Venezuelan resident showed $177 million in profit over 14 months across more than 640 transactions. The article raises questions about the effectiveness of existing control and monitoring procedures.
Accusations Against Binance
The publication frames the accusations as allegations of facilitating cryptocurrency fraudsters through the platform. It claims that problematic operations are concentrated in a limited number of accounts—specifically 13—and that large sums passing through these accounts raise suspicions. Internal data obtained by journalists included KYC elements and technical metadata, enabling tracing of the geographic locations of operations and account behavior.
Details of Suspicious Transactions
Key details include a total volume of suspicious transfers of at least $1.7 billion and that all 13 accounts collectively received about $29 million in USDT. Particular attention was drawn to an account linked to a 25-year-old Venezuelan resident: over 14 months, it showed $177 million in profit and conducted more than 640 transactions. The materials also noted operations involving users from Syria, China, Brazil, and Venezuela, with some accounts facing sanctions restrictions imposed by Israel.
Response and Comments
According to the report, Financial Times representatives contacted Binance for clarifications but received no replies. The article quotes Nick Heiser, head of trading at ONE, who emphasizes the need for adaptive monitoring mechanisms, as current tools, in his view, fail to handle atypical transfer schemes. Binance has previously faced US sanctions, and following earlier allegations, the platform stated intentions to strengthen suspicious payment checks and implement comprehensive monitoring.
Monitoring and Control Challenges
Despite statements about new KYC and AML procedures, the publication highlights doubts about the practical effectiveness of these measures. It specifically notes that several US officials stated the service failed to notify authorized bodies about over 100,000 suspicious payments, raising questions about the completeness of reporting obligations. Given reports of ongoing activity from problematic accounts, the article points to gaps in technical controls and the need for a flexible, adaptive monitoring system.
Why This Matters
If you mine cryptocurrency and use centralized exchanges for conversion, the situation around Binance shows that having KYC and AML procedures does not always guarantee effective control. This is important even for small miners because any monitoring failures on the exchange side can lead to stricter rules, frozen transfers, or increased verification requirements for all users. Moreover, changes in exchange policies often come externally and can affect the speed and convenience of fund withdrawals.
What to Do?
For miners with 1–1000 devices, simple and concrete steps can help reduce operational risks when working with exchanges. First, complete verification in advance and keep supporting documents: this speeds up responses to platform requests. Second, diversify withdrawals and avoid relying on a single exchange—this reduces the risk of total operation blocks when controls tighten.
- Check exchange terms and limits before transferring funds and keep transaction histories for reporting.
- Avoid frequent small transfers with frequent changes of account details—such patterns attract monitoring systems' attention.
- Follow official exchange announcements about KYC/AML rules and prepare documents in advance when procedures change.
If you want to compare details of this incident with other Binance-related publications and fund flows, check out cryptocurrency news and materials about a large Bitcoin whale, which help reveal similar fund movement scenarios. It’s also useful to read market reaction reviews and allegations against the exchange, such as in the article about claims against Binance, to understand upcoming rule changes.