CZ Binance Musings:  I actually don’t spend time to convince people who don’t want to be convinced. Everyone have their choice. I spend time on the people who want to learn about crypto.

The facts are clear. According to Chainalysis, just 0.15% of ALL crypto transactions in 2021 were associated with some type of illicit activity. The UN estimates 2-5% of fiat (cash), worth $800B to $2T, was associated with some type of illicit activity. Let’s be real.

The Reuters article yesterday is a huge waste of time and resources. This is the last I’ll say on it, and the last our team will interact with the writer. The author continues to wear it as a badge of honor on Twitter when his fiction pieces get fact-checked after he publishes.

We’re not perfect. We’ve made mistakes in the past, just as you’d expect from a young company operating in a disruptive new industry. But that doesn’t give them the right to ignore their obligations to tell an objective story. It doesn’t even have to be balanced. Just fair.

As policymakers continue to debate how this industry should be regulated, we will do our part by responding to every inquiry, supporting law enforcement wherever possible, and owning up to our mistakes.

I talk with 5-10 journalists every week. I sometimes disagree with how journalists cover us or a specific aspect of our industry. That’s ok. Most are looking to write an objective story.

External criticism is healthy. It would be far more concerning if there wasn’t any criticism. Just needs to be fair and on the up and up.

If you haven’t read our email exchange with Reuters before that article was released, I encourage you to. Journalism is extremely important for our industry. But together we should stand for fair reporting so crypto gets proper, accurate coverage.

So, What is the Reuters Article CZ Binance Talking About?

Dear Patrick,

As we mentioned in our previous email, Reuters is reporting an article on Binance which assesses the impact of past gaps in Binance’s anti-money laundering checks. This reporting follows our January article which showed that Binance kept weak anti-money laundering checks whilst it promised tougher compliance, despite concerns raised by senior company figures.

Our reporting indicates that Binance served as a conduit for the laundering of billions of dollars of illicit funds between 2017 and 2022. Based on an examination of blockchain data, court records, and law enforcement statements, we have calculated that during this period Binance processed transactions totalling at least $2.4 billion stemming from hacks, investment frauds and illegal online drug sales. The article covers a range of civil and criminal cases, and we have interviewed law enforcement officials, researchers, and crime victims in nine countries.

We would be grateful if you could respond to our questions below by the end of the week and raise anything that we may have overlooked. 

Our aim is to fully reflect Binance’s position in the article, and to ensure our reporting is accurate. If you would like to discuss these questions, we would be very happy to do so. 

Best regards,

Angus and Tom

Those who want to know more should check the Binance page on The Crypto Money Laundering Myth and the Machine Working Overtime to Sell a False Narrative.