Binance Working With DEA Investigators to Track Worldwide Drug CartelAn ongoing DEA investigation alleges a global drug cartel was using Binance to launder millions.

The United States Drug Enforcement Administration (DEA) has alleged that a global drug cartel trafficking in meth and cocaine used the popularcryptocurrencyexchange Binance to launder $15 to $40 million in illicit profits.

Forbes, citing a search warrant, reported that the DEA launched an investigation into the cartel's use of Binance in 2020, eventually leading to the arrest of Mexican citizen Carlos Fong Echavarria, who pleaded guilty to money laundering and drug dealing. Binance reportedly cooperated with the investigation, helping to identify an additional, still unnamed account holder who reportedly purchased nearly $42 million worth of cryptocurrencies through the platform.

Matthew Price, Binance senior director of investigations, toldForbesthat the blockchain was key. "This is actually an example of where the transparency ofblockchaintransactions works against criminal actors," he said. "The bad guys are leaving a permanent record of what they're doing."

Reuters hasreportedthat Binance itself may face a probe from the US Department of Justice (DOJ), but a company spokesperson said questions about any kind of DOJ investigation were "fueled with false insinuations."

Drug cartels and other criminal organizations have increasinglyturnedcryptocurrencies清洗他们的非法profits. Cryptocurrencies can ease moving large sums of money across borders and obscure the origin of the funds. However, cash remains the preferred method of payment for most criminals. While using cryptocurrencies in illegal activities is a growing concern, most crypto transactions remain legal and legitimate.