Binance Linked to Money Laundering Scheme in Belgian Extradition Case
Date: 2023-09-08 Author: Karina Ziganova Categories: BUSINESS, IN WORLD
Belgian authorities are searching for London-based fintech specialist Caio Marchesani, who is suspected of using cryptocurrency to launder large sums of money from criminal organizations.
According to a new report from Bloomberg, Trans-Fast Remittance owner Jacopo Marchesani allegedly facilitated significant cryptocurrency transactions for a notorious crime ring “on a scale rarely seen by European prosecutors.” The volume of laundered funds is not specified, but they claim that it is “hundreds of millions of euros.”
According to Belgian authorities, Marchesani "knowingly and intentionally" converted huge amounts of cash into bitcoin for two crime bosses - Sergio Roberto De Carvalho and Flore Brescers.
In May 2018, Marchesani was arrested at Heathrow Airport and remanded in custody without bail pending an extradition decision in the second half of September.
Three-year investigation
The possible network is believed to have combined blockchain technology with various elements of hawala, a system of informal trust-based money transfers widely known among Arab and Mediterranean traders in the Middle Ages. At the same time, these systems can be found outside and in parallel with traditional financial systems. According to the report, COVID-19 restrictions have encouraged the use of cryptocurrency to move funds as the logistics of moving physical cash have become more complex and expensive.
According to prosecutors, Marchesani allegedly used cryptocurrency to circumvent these problems by using at least 14 Binance accounts and charging rates of up to 9% for transfers.
Binance was supposed to stop providing all its services in Belgium, but the Financial and Markets Authority (FSMA) ordered the suspension of the company due to violations of local financial services legislation, taking into account the laws of the European Economic Area. At the same time, the regulator demanded the immediate return or transfer of all cryptographic keys and virtual currencies from Belgian clients.
The spokesperson says Binance provided “practical operational assistance” related to the investigation. He had not posted a comment at the time of publication.
Rumors have leaked that criminal charges may be filed against Binance. According to the source, the US Department of Justice is weighing criminal charges against the exchange and its executives. That said, the SEC's recently closed petition for a civil lawsuit against Binance has led many to believe the records contain evidence of criminal wrongdoing.
At this time, Binance is not accused of any criminal offenses.
