Binance Freezes $3.5M in Crypto as Kidnap Ransom Trail Collapses on Blockchain

Binance froze assets, traced blockchain trails, and helped crack a cross-border ransom-for-crypto network as it dismantled a $3.75M laundering ring hiding in casinos.

Binance Neutralizes Crypto Laundering Hub Hidden in Junket-Casino Labyrinth

Crypto exchange Binance revealed on June 13 that its Financial Intelligence Unit (FIU) supported Philippine law enforcement in dismantling a sophisticated kidnapping-for-ransom operation involving $3.75 million laundered through cryptocurrency. The criminals moved ransom payments through casino junket operators before dispersing the funds across digital-asset channels. Binance’s cooperation enabled investigators to identify suspects and track illicit fund flows on the blockchain.

Binance CEO Richard Teng commented on social media platform X on June 13:

When crypto is misused, we step up. Our team worked with Philippine authorities to trace a $3.75M crypto ransom, identifying suspects and flows via our intelligence tools.

The Philippine National Police’s Anti-Cybercrime Group encountered challenges in tracing the layered transactions due to the involvement of private junket operators—entities that manage travel and betting arrangements for high-stakes gamblers. These operators served as intermediaries, helping obfuscate the financial trail before the funds reached crypto wallets. A law enforcement official underscored the importance of Binance’s support: “The ransom funds were fragmented across several addresses before ultimately reaching crypto wallets. Binance’s prompt assistance was crucial in helping us advance the investigation.”

In addition to providing analytics, Binance disrupted the laundering operation by immobilizing associated assets. The crypto exchange stated:

Our team also froze over USD $3.5 million in related crypto assets, disrupting the network’s financial infrastructure. Lin was later arrested and pleaded guilty in a U.S. federal court to narcotics conspiracy, money laundering, and distributing misbranded drugs.

Binance noted that similar efforts had assisted in dismantling cybercriminal networks in Thailand and Malaysia. While digital currencies present new challenges to global enforcement, crypto supporters argue that blockchain transparency offers law enforcement novel ways to detect and disrupt illicit finance.

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