Binance Working With DEA Investigators to Track Worldwide Drug Cartel An ongoing DEA investigation alleges a global drug cartel was using Binance to launder millions.

By Steve Huff

RJ Sangosti | Getty Images

The United States Drug Enforcement Administration (DEA) has alleged that a global drug cartel trafficking in meth and cocaine used the popular cryptocurrency exchange Binance to launder $15 to $40 million in illicit profits.

Forbes, citing a search warrant, reported that the DEA launched an investigation into the cartel's use of Binance in 2020, eventually leading to the arrest of Mexican citizen Carlos Fong Echavarria, who pleaded guilty to money laundering and drug dealing. Binance reportedly cooperated with the investigation, helping to identify an additional, still unnamed account holder who reportedly purchased nearly $42 million worth of cryptocurrencies through the platform.

Matthew Price, Binance senior director of investigations, told Forbes that the blockchain was key. "This is actually an example of where the transparency of blockchain transactions works against criminal actors," he said. "The bad guys are leaving a permanent record of what they're doing."

Reuters has reported that Binance itself may face a probe from the US Department of Justice (DOJ), but a company spokesperson said questions about any kind of DOJ investigation were "fueled with false insinuations."

Drug cartels and other criminal organizations have increasingly turned to cryptocurrencies to launder their illicit profits. Cryptocurrencies can ease moving large sums of money across borders and obscure the origin of the funds. However, cash remains the preferred method of payment for most criminals. While using cryptocurrencies in illegal activities is a growing concern, most crypto transactions remain legal and legitimate.

Steve Huff

Entrepreneur Staff

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Thought Leaders

Cultural Fit Can Make or Break an M&A Deal

One of the most critical components for success -- cultural fit -- often falls by the wayside.

Growing a Business

What Our Digital World Is Missing — and How I Turned It Into $100 Million After Dropping Out of High School

I went from high school dropout to $100 million CEO by sticking to one very important learning principle.

Growing a Business

This Charleston Hotspot Found an Inflation Loophole That Helps It Avoid Rising Food Costs – Here's Its Secret

Miller's All Day partners with local farmers to combat rising inflation costs and thrive in Charleston's competitive restaurant scene.