Binance’s $1.6m crypto trace leads Malaysian police to kidnappers

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

The prominent cryptocurrency exchange collaborated 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, according to an announcement from Binance.

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.

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.

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

Erin Fracolli, Binance’s Global Head of Investigations, described 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

Binance has a history of assisting law enforcement agencies worldwide in tracing illicit crime-related funds. 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, it teamed up with India’s Enforcement Directorate to take down a fake online gaming app that led to losses upwards of $47.6 million. The investigation resulted in the arrest of four individuals behind the operation.

Binance was also registered as an Indian Intelligence reporting entity earlier this year.

Last year, the Royal Thai Police’s Cyber Crime Investigation Bureau cracked down on a $277 million scam operation with Binance’s assistance.