The post Chainalysis refutes Binance’s illicit volume report due to omitted data appeared on BitcoinEthereumNews.com.
Chainalysis pushed back against Binance after the exchange published an analysis that used its data to claim that illicit trading volume across the seven biggest crypto exchanges sat between 0.018% and 0.023%. In the analysis, Binance had said that numbers from Chainalysis and TRM Labs showed the exchange handled far larger crypto flows while keeping criminal exposure low. According to the material provided, Chainalysis said the analysis did not come from its team and did not include major crime categories tracked across its datasets. Two days after the post went up, Binance updated the analysis to say it was actually done internally by the exchange itself using Chainalysis and TRM Labs’ raw datasets. The exchange also added details on how it calculated direct links between illicit wallets and trading activity. Chainalysis is now saying all those figures did not include funds tied to ransomware or hacks, and that the method ignored any movement that went through an intermediate personal wallet before landing on Binance. Chainalysis challenges Binance’s method and missing categories Chainalysis released a public message on X saying that it was receiving many inquiries about how its data was used. The firm said, “This analysis was conducted by Binance based on select Chainalysis data. Chainalysis did not conduct the analysis.” The message also said “the data Binance used for their analysis does not appear to include all categories of illicit activity,” pointing to ransomware and stolen funds as examples. Chainalysis then said that “the Binance analysis indicates that it is based on direct exposure only,” which means crime-linked funds that passed through a personal wallet were excluded. The firm did not dispute that its datasets were used. The issue was what parts were chosen and what categories were left out. The clarification arrived at a time when Binance was…