The United States Financial Crimes Enforcement Network (FinCEN)– a bureau of the Treasury Department– has argued that Binance is connected to the illegal cryptocurrency platform Bitzlato.In an order released on Jan. 18, FinCEN specified that the Binance cryptocurrency exchange was among the”leading 3 receiving counterparties”of Bitzlato in terms of Bitcoin(BTC) transactions.According to the authority, Binance was among the most significant counterparties that got Bitcoin from Bitzlato between May 2018 and September 2022. Other counterparties included Russia-connected darknet market Hydra and the alleged Russia-based Ponzi plan referred to as”Finiko,”FinCEN noted.On the other hand, FinCEN did not mention Binance as the leading three sending counterparties in the order. According to the file, the greatest Bitcoin senders to Bitzlato in between May 2018 and September 2022 were Hydra, Finland-based exchange LocalBitcoins and Finiko.

“Approximately two-thirds of Bitzlato’s leading receiving and sending counterparties are related to darknet markets or rip-offs, “FinCEN wrote in the order. The agency noted that in between 2019 and 2021, Bitzlato received crypto worth$206 million from darknet markets,$224 million from rip-offs, and$9 million from ransomware attackers.The news comes in the middle of several U.S. authorities initiating significant enforcement action against Bitzlato, accusing the company of cash laundering and allegedly facilitating circumvention of sanctions against Russia. As part of the case versus Bitzlato, the Federal Bureau of Investigation detained Bitzlato creator Anatoly Legkodymov on Jan. 17 in Miami.Unlike significant crypto exchanges like Binance or Coinbase, Bitzlato was an obscure cryptocurrency service. Founded in 2016, the platform apparently has an office in the Federation Tower skyscraper in Moscow, where it accepted transactions of$100,000 or more.The supposed participation of Binance in Bitzlato’s case raises some issues about the exchange’s operations and possible ties with Russia. As formerly reported, Binance was amongst exchanges that opted to continue to serve non-sanctioned Russians after the European Union adopted the eighth sanctions plan against the country.Related: Binance signs up as virtual asset company in Poland Addressing Pandoraland’s request for remark concerning FinCEN’s reference to Binance in Bitzlato’s case, a representative for Binance said that the firm has actually been working together with regulators, stating:”Binance is pleased to have provided considerable support to global law enforcement partners in support of this examination. This exhibits Binance’s dedication to working collaboratively with police partners worldwide.”FinCEN did not instantly react to Pandoraland’s ask for remark.