Authorities in Ukraine announced the arrest of a gang, which worked 20 exchange services, for the purpose of money laundering resulting from the criminal activities of other criminals. It is said that fraudsters did laundering of $ 42 million.
According to authorities, the gang consisted of three people and have been active since 2018. The three swindlers were advertising their services in underground criminal forums. The gang was telling the candidates customers-criminals that can convert cryptocurrencies acquired through illegal activities into fiat currency, assisting criminals in money laundering.
The arrests were made in late June but now new details have been released by Binance and Ukrainian police. Binance, who was involved in the investigation, said the gang collaborated with ransomware groups, while distributing ransomware itself.
“Bulletproof Exchanger” project
The role of this project is detecting malicious activity in the cryptocurrency ecosystem, locating the perpetrators and cooperating with the authorities to arrest them.
"Bulletproof Exchanger" is a general term used internally to describe a high exchange exchanging service. risk used for criminal activities, such as ransomware, "said its security team cryptocurrency service exchange.
Binance researches and collects data, DNS records etc.
Help from TRM Labs
Once Binance acquired a complete database of different brands, the company partnered with TRM Labs, a blockchain analytics company specializing in fraud detection.
Binance said TRM Labs analyzed the data and finally identified a first bulletproof exchanger and one of customers of money laundering, which was a ransomware gang. So further research was done.
Subsequently, Binance shared its findings with the Ukrainians authorities, which started research for the ransomware group.
"Some cases can take years," the team said security of Binance. "In this case, we were able to move very quickly, as it took us about three months."
The "Bulletproof Exchanger" project continues
Binance says the Bulletproof Exchanger Project will continue to operate and hopes to identify similar criminal groups.
"The fight against money laundering, of ransomware "and other malicious activities are vital to the prosperity of the [cryptocurrency] community and the development of the industry," Binance said.