-Six Binance accounts linked to drug traffickers had almost $1.8 million in cryptocurrencies confiscated by federal officials. The US District Court for the Eastern District of Michigan approved a request for civil forfeiture of the cryptocurrencies, which were seized in May 2022 as part of an operation to disrupt a cash pipeline that used stablecoins to transfer proceeds from drug sales to Mexico. According to court documents and a source familiar with the matter, cash couriers deposited drug money, bought USDT and bitcoin through Binance, and then sent the cryptocurrency to a specified address controlled by a criminal organization in Mexico.
The criminal complaint identified six Binance accounts. According to a source who works with law enforcement on such matters, Binance has a close relationship with the DEA. They regularly exchange intelligence to help the agency's operations and improve Binance's anti-money laundering policies. This is part of a larger trend of Mexican cartels using Binance for money laundering. Previous reports have shown that Mexican gangs have been using the platform since early 2020. In 2021, a Mexican national named Carlos Fong Echavarria pleaded guilty to charges related to drug trafficking and laundering nearly $4.7 million in cryptocurrency.