Daily Life of Binance Investigators
Main Takeaways
As a leader in the crypto industry, Binance takes pride in fulfilling its duty to enhance the security and integrity of the digital asset ecosystem.
As part of its robust compliance program, Binance has built a world-renowned Financial Crime Compliance (FCC) unit composed of the industry’s top investigators, blockchain analysts, and former law enforcement agents.
Learn more about the daily work of the people pulling the heavy weight of Binance’s financial crime-fighting work – directly from the investigators.
A large-scale criminal operation orchestrated from Thailand defrauded thousands of people of millions of dollars worth of funds using a hybrid romance-investment scheme known as pig butchering. The ringleaders led lavish lives that featured sports cars and luxurious villas. They managed to fly under the radar until, one day in 2023, police agents came knocking on their doors, and everything was over. What led to the criminal group’s demise was that at least some of their transactions were on the blockchain, allowing Binance’s sleuths to pick up the trail. The rest was in the hands of the Royal Thai Police.
Public blockchains are transparent by nature, and on-chain transactions are perfectly traceable. These properties of digital assets have given rise to a new area of financial intelligence and investigation: tracking the movement of funds on the blockchain. Binance employs some of the brightest talent and best-in-class technology in this emerging space to tackle digital asset-related crime. Additionally, it uses these to collaborate and share expertise with law enforcement globally to protect users and thwart bad actors in the wider blockchain ecosystem. The Thai pig butchering case is just one of many recent examples of such partnerships leading to remarkable results.
Financial Crime Compliance at Binance
Binance’s Financial Crime Compliance (FCC) unit is composed of seasoned investigators hailing from a broad range of backgrounds, from technology and banking to law enforcement and intelligence. Distributed across multiple teams around the world, the FCC unit plays an essential role in protecting the ecosystem from malicious actors and fraudulent activity, leading the fight against crypto crime.
“Strategically, the team has helped Binance build a strong reputation with law enforcement as a reliable exchange partner known to go above and beyond, doing its part to help fight crime worldwide and make the crypto industry a safer place for everyone.” – Pablo, Special Investigations
As an industry leader with a unique user-focused culture, Binance goes above and beyond industry standards to protect our users and enhance the security of the wider ecosystem. Over time, Binance has built one of the strongest compliance departments in the industry.
To date, Binance has helped authorities freeze and confiscate crypto assets worth over one billion USD in their public and private collaborations to deter malicious actors in this space. In 2023, Binance’s world-class FCC unit responded to over 58,000 law enforcement requests, conducted 120 workshops and training sessions with law enforcement, and completed over 51,600 suspicious activity reports (SARs) – a 180% increase from 2022 – involving sanctions, scams, fraud, hacks, and more.
A dynamic atmosphere
Binance’s FCC agents are not just investigators; they are also compliance experts who must have the right capabilities and experience to balance these two areas. Thus, working in the FCC unit offers a dynamic and ever-changing daily environment. As James from the SAR team puts it, “No two days are the same; there are always new learning opportunities and challenges to surmount, making the team a thrilling one to be a part of.”
Investigators typically engage with both internal and external dimensions of compliance in their day-to-day functions. Team members often find themselves providing vital support to law enforcement agencies, helping them trace leads, comprehend Binance’s records, or resolve issues.
Usually, a request or alert will first come to either the Case team or SAR team, who will then escalate these to the Special Investigations team or the Sanctions Investigations team, if necessary. Overall, the FCC unit contains numerous moving parts, all working in conjunction to secure the ecosystem.
Collaboration is Key
“Collaboration is at the core of our investigative framework, both internally and externally.” – Akbar, Special Investigations
The FCC unit plays a key role in Binance’s internal compliance processes, assisting in cases and initiatives that require further investigation in specialized areas such as sanctions, fiat, and transaction monitoring. Externally, it collaborates with law enforcement agencies worldwide in a multitude of areas, particularly training and solving cryptocurrency-related crimes.
Although data shows that the share of cryptocurrency transactions tied to illicit actors is very small, digital assets may be used in a range of illicit activities whenever a transfer of money or value is involved, including fraud, money laundering, human trafficking, drug trade, ransomware attacks, and more. The amount of fraudulent funds that run through cryptocurrency channels is much less than what is commonly believed, particularly when compared to fraudulent transactions in traditional finance.
Law enforcement agencies often recognize Binance’s investigators for their cooperation, response time, and outreach on cases related to tackling these types of crimes. In a previous discussion, Erin West, a deputy district attorney in Santa Clara County, California, commented: “Binance and other platforms are very open to being helpful, very open to saying, ‘We don’t want dirty money on our platform, either. We don’t want bad actors moving money on our platform, and we will help.’”
Peter from the Special Investigations team adds: “Binance has invested heavily in compliance, and if you ask any law enforcement agency we worked with, they will tell you that they see this and really appreciate the way we help create a safer ecosystem. On the other hand, being the biggest brings heavy responsibility and scrutiny from these agencies and regulators. Yet, this is where we show the way in compliance, which we hope these regulators will enforce as an industry standard for all others.”
The FCC team members like to think of their unit as a force multiplier that comes to crime fighters’ aid with relevant intelligence and expertise when and where they can make a critical difference. For our investigators, one of the most rewarding aspects of the job is receiving recognition and appreciation from partners, especially after playing an essential role in a case by recovering funds, locating kidnapping victims, or helping identify criminals.
Natasha from the Case team chimes in: “By fostering a cooperative and diligent work environment, we are not just serving our users but also playing our part in upholding the integrity of the industry. As such, every team member is both a guardian of our users’ trust and a representative of Binance’s mission for a more transparent and secure crypto world.”
Investigators in Action
Operating on the cutting edge of the fight against crypto crime, Binance’s investigators must leverage some of the most sophisticated tools and technology available. These include a mix of internally developed and externally purchased software for a range of investigative purposes. Internal software is typically used for communicating between teams, analyzing transactions, and examining records. External software is generally used for blockchain analysis, intelligence gathering, and data visualization and analysis.
Given crypto’s round-the-clock nature, the role of a Binance investigator requires being tireless and regularly tackling time-sensitive problems. Charlotte from the SAR team recalls a case involving the hacking of a payment service channel on a weekend when most of her team was off. Upon learning about the breach from a fiat partner, she immediately assembled a task force to examine over 90 suspicious accounts that have potentially received the stolen funds. Charlotte’s swift action was crucial in recovering the funds, showcasing the readiness of Binance investigators to respond promptly in urgent cases, regardless of the circumstances.
Another key difficulty for investigators often arises from one of crypto’s biggest advantages: its borderless nature. Traditional law enforcement agencies are generally restricted to their jurisdictions, making cross-border cybercrime difficult to combat at times. These limitations highlight the critical role of effective international coordination and Binance’s role in facilitating these efforts.
Akbar from the Special Investigations team brings up a notable instance of successful international cooperation. One particular account holder had been the focal point of multiple law enforcement requests worldwide. The team analyzed the account holder’s activity, transactions, and law enforcement request history. Suspicions were further raised by the individual’s vague responses to inquiries.
Following these leads, Akbar reached out to the Cyber Crimes Investigation Bureau of the Royal Thai Police. Upon cross-verifying the team’s findings with the police’s database, a link was established to an ongoing pig-butchering scam investigation. Ultimately, this breakthrough led to the shutdown of a prolific criminal ring in the successful operation code-named “Trust No One.”
Passion for Justice
What drives Binance’s investigators is a deep passion for justice and doing the right thing. One of the most fulfilling parts of the job is the affirmation of positively impacting the world at both an industry and an individual level. Hindering malicious actors, dismantling criminal networks, and upholding justice brings a unique sense of accomplishment.
“Cryptocurrency investigations often resemble intricate puzzles, and our team thrives on the challenge of piecing together information to uncover the complete picture of criminal activities.” – Akbar, Special Investigations
Conversely, one of the most difficult aspects of the job is seeing the fallout of nefarious actors’ criminal behavior. Gaining insight into the devastating impacts on innocent victims can be truly disheartening, reinforcing the importance of intelligence work.
Akbar continues: “Despite our best efforts, the unfortunate reality is that scams still occur. It serves as a reminder of the challenges we face and the ongoing need to enhance awareness and preventive measures.” These obstacles hold for individuals and law enforcement organizations alike.
Diverse roles and origins
Beyond the sense of accomplishment in doing good for the world, many team members also cite the diversity of the team as another favorable aspect of the job. The unique insights each investigator has to share with one another foster a shared team spirit.
Binance’s investigators come from a multitude of backgrounds, from banking and compliance in traditional finance to law enforcement and intelligence in governments worldwide. Some notable examples among these include the Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS), and Treasury Department in the U.S., as well as Europol in the E.U., the Home Office in the U.K., Singapore’s Ministry of Home Affairs (MHA), the Hong Kong Police Force (HKPF), and many more.
Prior to joining Binance, these world-class crime fighters participated in or led some of the biggest crypto-related investigations, such as those into the Silk Road darknet marketplace, the BTC-e bitcoin exchange, and the Mt. Gox hack. Interestingly, many investigators even worked with Binance on the law enforcement side before joining, commending Binance’s strong collaborative efforts.
“The incredible support I received from Binance during my investigations while in law enforcement affirmed my decision to join the company. I knew, without a shadow of a doubt, that Binance was where I wanted my career path to lead.” – James, SAR
The Future of Investigations
Given crypto’s dynamic nature, one of the biggest challenges to Binance’s FCC unit is keeping up with criminals and their methods. As bad actors become increasingly technical and sophisticated, Binance’s investigators must constantly refine their tools and skill sets to stay ahead.
Beyond the investigators themselves, there is the added difficulty of translating these changes in crypto crime to traditional law enforcement. Users behave differently in crypto markets compared to traditional financial markets, making conventional methods less effective and necessitating novel approaches.
Aside from the rapid evolution of crypto and blockchain technology, there is also the transforming regulatory landscape that surrounds them. While these are ultimately positives in the fight to protect users, keeping up with changing rules and regulations can be challenging, particularly across different markets and jurisdictions. Oftentimes, the lack of regulation can make it difficult to sanction malicious actors. In the pursuit of justice, catching criminals is one thing, while punishing them is another.
As the crypto industry moves into the next phase of its compliance-led development, regulatory scrutiny is expected to tighten, hopefully offering clarity and paving the way for a harmonized global framework. Aligned in this direction, the FCC unit will continue to play a critical role in seizing this opportunity, leading the way for crypto compliance, and keeping the ecosystem SAFU.