In collaboration with crypto trading platforms Binance and Tokocrypto, Indonesia’s Criminal Investigation Agency, locally known as Badan Reserse Kriminal (Bareskrim), disrupted a major crypto scam, arresting suspects and seizing $200,000 (₱11.2 million) in stolen funds.
What’s the significance: The operation highlights the importance of public-private partnerships in combating crypto fraud and ensuring a secure ecosystem for users.
Key Details: The scam, which was first uncovered in November of 2023, was part of a pig butchering operation involving fraudulent crypto trading.
- The Role of Tokocrypto: Bareskrim first asked for assistance through Tokocrypto, then the local crypto exchange referred the case to Binance’s Financial Intelligence Unit (FIU).
- The Investigation Proper: Investigators found key wallet addresses, around 50 mobile phones, and local bank cards linked to the scam.
- The Role of Binance: Binance’s FIU provided key forensic analysis to the discovered wallet addresses.
Key Quotes:
Ferry Maulana, an investigator at Bareskrim, appreciated Tokocrypto and Binance FIU’s efforts to help halt the bad actors:
“The success of this operation demonstrates our commitment to fighting financial fraud and protecting the public. The partnership with Binance FIU and Tokocrypto has been instrumental in unraveling the complexities of this case and bringing the perpetrators to justice. We will continue to pursue all leads to ensure that those involved are held accountable.”
Nils Andersen Röed, the head of Binance FIU, emphasized the importance of public-private collaboration in fighting financial crimes, noting that its department handled 58,000 law enforcement requests globally in 2023, up from 50,000 in 2022:
“Because we keep an open communication channel for global law enforcement agencies, we were able to connect with Bareskrim, leading to valuable actions. By working together, we can leverage our combined expertise to effectively track and seize illicit funds, ensuring that the cryptocurrency ecosystem remains secure and trustworthy.”
What to watch: The case is still ongoing, with more leads being followed.
Binance in PH: Binance was also involved in the past with the country’s authorities.
- In 2022, then Binance’s Head of APAC Leon Foong and General Manager for the Philippines Kenneth Stern participated in the session of the Senate’s Committee on Banks, Financial Institutions, and Currencies, sharing Binance’s experience with global regulators.
- In the same year, the international crypto exchange, in partnership with the Cybercrime Investigation and Coordination Center, which is under the Department of Information and Communications Technology, conducted a “Cryptocurrency and Cybersecurity Training” seminar in Quezon City, with law enforcement agencies.
- However: It should be noted that the exchange’s websites remain banned in the country, and the Philippine SEC recently expressed optimism that its request to remove Binance apps from Google and Apple stores will be granted, as part of its continued efforts to remove the global crypto exchange from the Philippines and safeguard investors.
Worth reading: Recently, Binance’s Indonesian subsidiary, Tokocrypto, received a full license as a Physical Crypto Asset Trader from Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti).
This article is published on BitPinas: Crypto Exchanges Binance, Tokocrypto Aid Indo Police in Busting Crypto Scam
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