Binance Reduced the Share of Illegal Transactions by up to 98%

On November 17, Binance published data from two analytics firms — Chainalysis and TRM Labs. According to their estimates, over the past 2.5 years, the share of transactions involving suspicious addresses has decreased by 96–98%.

According to Chainalysis, in June 2025 only 0.007% of Binance transactions were linked to addresses involved in illegal activity. The average rate among the other six largest exchanges is 0.018% (2.5 times higher).

TRM Labs specialists obtained similar results: 0.016% of Binance operations had direct links to illicit sources, compared to 0.023% for competitors. The difference is around 30%.

“In 2025, the exchange processed over $90 billion daily and around 217 million trades per day. This exceeds the combined volume of many competitors. Maintaining a record-low share of illicit funds at such scale sets a new global benchmark for risk management and operational resilience,” Binance noted.

Industry Overview

Across the seven largest centralized exchanges, direct links to suspicious addresses accounted for 0.018–0.023% of total operations as of June 2025. This is a historic low compared to early 2023.

“Direct exposure refers to the portion of an exchange’s total transaction volume that can be directly traced to wallets involved in confirmed illicit activity — extortion, scam projects, sanctions violations, or hacks. Blockchain transparency allows precise measurement of this metric,” Binance explained.

For example, if $1 out of every $10,000 processed by an exchange originates from or is sent to an address linked to illegal activity, the direct exposure is 0.01%.

From January 2023 to June 2025, Binance reduced its exposure to illicit flows by 96% according to Chainalysis and by 98% according to TRM Labs.

“This improvement rate exceeds the average pace of the other six centralized exchanges by 4–5 percentage points,” Binance stated.

Both companies use their own address-clustering algorithms, datasets linking blockchain addresses to real-world entities, and transaction classification methods. Differences in figures arise from methodological variation, but the conclusion is the same: illicit activity in the crypto industry is minimal.

Traditional Finance Context

For comparison, Binance cites Nasdaq’s 2024 Financial Crime Report, which states that in 2023, $3.1 trillion in illicit funds moved through the global financial system.

According to UN and IMF estimates, 2–5% of global GDP — over $2 trillion — is laundered annually through traditional finance. In contrast, based on Chainalysis and TRM data, the combined yearly illicit activity across the seven largest centralized crypto exchanges amounts only to billions of dollars.

In August, Binance and other trading platforms launched the Beacon Network — a real-time anti–crypto crime system. The exchange also joined the global T3+ initiative to combat criminal activity in the crypto sector.

See also: "Bitget: Capital inflows to the exchange exceeded $1.78 billion in October"

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