Binance team responds to Reuters accusations! Report claims that after implementing KYC, they lost 90% of users, resulting in losses of billions of dollars.

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1. What is your opinion on the connection between Binance and the dark web market Hydra?

Tigran stated that Binance cannot control the flow of funds coming in and deposits, only the operations thereafter.

"When Indian scammers ask victims to buy Apple gift cards, does that mean Apple is laundering billions of dollars? It's not the case; criminals choose the simplest, cheapest method. If Binance is the cheapest, why wouldn't they use it?" Tigran said.

Matthew added that KYC on exchanges only comes into play when withdrawing fiat currency. When these exchanges receive tokens confirmed to be involved in money laundering schemes like Helix mixer in 2021, they will expel the criminals from the platform. They will turn to other exchanges that do not require KYC or resort to face-to-face transactions.

"They don't want to use exchanges; if criminals attempt to use Binance, the transactions will be monitored and handled," Matthew said.

2. How does illegal activity compare to other exchanges?

Regarding this question, Tigran's response was somewhat vague, stating that there is indeed illegal funds flowing in, but it is similar to most exchanges. Binance is better in some aspects compared to Kraken and Coinbase, but not in others, with no particular abnormality.

3. What is your opinion on Reuters claiming that users can evade sanctions and laws by using VPNs?

Tigran stated that no exchange would prohibit the use of VPNs, but using VPNs does not necessarily equate to criminal activity. Moreover, using VPNs can be helpful in investigations as some users exhibit certain patterns when using VPNs, aiding in identity recognition.

Furthermore, regarding accusations that Binance ignored sanctions and served Iranian users, Chagri stated that from the perspective of sanctions, Iranian citizens residing outside Iran are not under the jurisdiction of the OFAC (Office of Foreign Assets Control), the U.S. enforcing agency for sanctions.

"If it's UN sanctions, they apply anywhere that recognizes UN sanctions. But if it's U.S. sanctions, like Iran and Cuba, it only applies to U.S. legislation and enforcement agencies, they will never prosecute Iranian citizens residing abroad because it is illegal to do so," Chagri said.

4. What is your opinion on Reuters claiming that CZ ignores KYC and anti-money laundering policies?

Chagri stated that when he explained certain things to CZ, he was unwavering in acting correctly and would not choose to do wrong.

Tigran also added that he cannot defend past actions, but they are now here to address the issues. He mentioned that CZ has spent billions of dollars on these matters because it is the right thing to do.

5. In July last year, Binance reduced the withdrawal limit for non-KYC accounts from 2BTC to 0.06BTC. Did this decrease illegal activity?

Tigran stated that illegal activities have significantly decreased compared to the past 6-8 months. This is not only reflected in deposits but also in the percentage of transactions. However, Tigran also presented a staggering statistic, mentioning that after implementing KYC, Binance lost 90% of its customers, resulting in the loss of billions of dollars in revenue.

However, the claim of "losing 90% of customers" wasdenied by founder CZ, who believes it was a completely incorrect reference, but evidently, it was helpful in terms of traffic.