Binance Stays Quiet after Fisco Accuses it of Facilitating BTC 1,450 Laundry

Binance Bitcoin Exchange Legal
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Tim Alper
Author Categories
About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more

Fisco, the Japanese financial information firm that operates the Zaif crypto exchange, has confirmed reports that it has lodged a lawsuit in the United States against trading platform Binance, whom it accuses of facilitating the laundering of over USD 9 million worth of bitcoin (BTC) in a hack that brought the Japanese exchange to its knees in 2018.

Source: a screenshot, Instagram/binance

As a result of the hack, Fisco – which operated a rival crypto exchange platform prior to its merger with Zaif – stepped in to buy up the company from its former operator, the Osaka-based Tech Bureau.

Thieves made away with BTC 1,451.7 (roughly USD 15 million at today’s prices, but closer to USD 9 million at the time) during the hack. But Fisco believes that the hackers took the stolen bitcoin to Binance, making use of what it called the latter’s “lax” KYC (know-your-customer) policies in an effort to stay under the radar.

Binance told Cryptonews.com that it had no “comments on this matter at the moment.”

Fisco, meanwhile, is yet to respond to a request for comment, but earlier issued a press release stating only that one of its subsidies had indeed launched legal proceedings against Binance in the United States. The firm added,

“We will notify [the press] as soon as possible if there are any issues that need to be disclosed at any point in the future.”

Both exchanges are known to be relatively very forthcoming with media comments, but have thus far remained almost silent on the matter – although they may be exercising caution considering the legal case in question is now active.

In its American court filing, the Japanese firm stated that it had used blockchain analytics solutions to trace the sale or trading of the stolen BTC to Binance-held accounts.

Fisco’s lawyers wrote,

“Crypto exchanges, including Binance, have long been on notice that the failure to implement proper KYC procedures facilitates violations of anti-money laundering laws. […] Cryptocurrency thieves also know that the failure to implement proper KYC procedures facilitates money laundering, and they know which crypto exchanges are the laxest.”

The filing’s authors also made reference to a Chainalysis report from earlier this year that claimed, in the words of the lawyers,

“Binance and another exchange, Huobi, received more than 50% of the USD 2.8 billion in illicit bitcoin and ‘lead all exchanges in illicit bitcoin received by a significant margin.’”

Back then, Binance said that it is “aware of the growing trend and movements of illicit funds” and that they “are working with like-minded partners such as Chainalysis to improve on existing systems and address these concerns.”

The Zaif hack saw thieves make off with some USD 62.5 million in crypto back in September 2018.

More Articles

Price Analysis
Will Trump’s Tariffs Boost Bitcoin: Down 5% Again
Arslan Butt
Arslan Butt
2025-02-08 14:39:24
Price Analysis
Solana Struggles: Price Down Almost 15% in a Week – Is It Time to Buy?
Arslan Butt
Arslan Butt
2025-02-08 13:22:54
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors