Binance processed transactions totalling at least $2.35 billion stemming from hacks, investment frauds and illegal drug sales, Reuters calculated from an examination of court records, statements by law enforcement and blockchain data, compiled for the news agency by two blockchain analysis firms.

Binance CEO Changpeng Zhao accused Chainalysis on Twitter of “bad business etiquette.”

[...] “Do everything to increase our market share, and nothing else,” Zhao wrote.

The priority, he said, was to ensure Binance overtook larger cryptocurrency exchanges and fended off competition from smaller rivals. “Profit, revenue, comfort, etc, all come second.”

Asked to elaborate on this remark, Hillmann said, “Neither CZ nor any other Binance business leader has ever suggested that increasing market share should supersede compliance obligations.”

Binance became a key payment provider for Hydra, the giant darknet marketplace, according to the blockchain data compiled for Reuters, a review of Hydra user forums, and interviews with illegal drug users and researchers.

Crypto flows between Binance and Hydra dropped sharply after the exchange tightened its customer checks in August 2021, the data from Crystal Blockchain shows.

Monero proved to be popular among Binance users. As of late May, Binance was processing Monero trades worth around $50 million a day, far more than other exchanges, according to data from the CoinMarketCap website.

According to a group chat among Binance staff, the compliance team sometimes approved accounts with inadequate documentation. A team member complained to colleagues that one user was able to open an account by submitting three copies of the same receipt from a meal at an Indian restaurant.