Binance, in collaboration with the Royal Malaysia Police (RMP), successfully traced $1.6 million in kidnapping ransom paid for the release of a 59-year-old businessman.

Joint Effort in Tracing Ransom

The prominent cryptocurrency exchange worked closely with Malaysian law enforcement to track a portion of the $4.5 million ransom paid by the victim’s family. The investigation led to the detention of 14 individuals linked to the case.

The victim was kidnapped during the early hours of Oct. 13 while on his way to the airport. He was released later that day after the ransom was paid in a combination of cryptocurrency and cash.

Advanced Blockchain Analysis

Investigators from Binance’s Financial Intelligence Unit utilized advanced blockchain transaction analysis to trace the cryptocurrency paid to the kidnappers. As a result, law enforcement could “follow the money trail, which was crucial in apprehending the suspects and recovering a significant portion of the ransom,” said ASP Nurul Aqila, Senior Officer at the Commercial Crime Investigation Department.

Recovered Assets

The RMP managed to recover 1.95 million ringgit ($443K) and one million Singapore dollars ($760K) in cash, alongside cryptocurrency worth 1.75 million ringgit ($398K). Additionally, they seized a gun, 250 rounds of live ammunition, and a pair of handcuffs.

Expert Insights on Cryptocurrency and Crime

Erin Fracolli, Binance’s Global Head of Investigations, highlighted the case as a clear example of how cryptocurrency can be exploited in criminal activities, adding, “We urge individuals and businesses to remain vigilant and take proactive measures to protect themselves against such threats.”

Past Collaborations with Law Enforcement

Binance has a history of assisting law enforcement agencies worldwide in tracing illicit crime-related funds. Notable instances include:

  • Last month, the exchange worked with Indian police to help dismantle a $100,000 crypto scam that duped investors by falsely claiming ties to India’s renewable energy initiatives.
  • In September, Binance teamed up with India’s Enforcement Directorate to take down a fake online gaming app that led to losses upwards of $47.6 million, resulting in the arrest of four individuals.
  • Earlier this year, Binance was registered as an Indian Intelligence reporting entity.
  • Last year, the Royal Thai Police’s Cyber Crime Investigation Bureau cracked down on a $277 million scam operation with Binance’s assistance.

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