Noah Perlman, Chief Compliance Officer for Binance, said that data indicates illicit exposure on leading centralized exchanges is minimal and even lower on Binance. He added that exchanges actively assist law enforcement. The statement was made on the social media platform X.
“Crypto critics continue to draw conclusions from anecdotes,” said Perlman. “Real data from @chainalysis and @trmlabs shows illicit exposure on top CEXs is just a few hundredths of 1%, with @Binance ‘s even lower. Yes, bad actors use crypto (and fiat way more), but CEXs actively fight crime & aid law enforcement.”
According to TRM Labs’ 2025 Crypto Crime Report, the cryptocurrency market expanded to over $10.6 trillion in 2024 while illicit volume decreased to approximately $45 billion, marking a 24% reduction year over year. The report highlights continued declines in ransomware proceeds and emphasizes that stronger compliance, analytics, and cooperation with authorities have reduced criminals’ ability to cash out through mainstream venues. These trends provide context for Perlman’s claims about low illicit exposure at centralized exchanges (CEXs).
A Binance analysis of independent datasets from Chainalysis and TRM Labs reports that direct illicit exposure across the seven largest centralized exchanges was between approximately 0.018% and 0.023% as of June 2025. Binance’s own direct exposure measured around 0.007% based on Chainalysis data and approximately 0.016% according to TRM data, both figures being below those of its peers while operating at the largest scale. Methodology and definitions of “direct exposure” are detailed in the post.
Binance outlines a multi-layered compliance framework in its program overview, featuring a dedicated Customer Due Diligence team operating robust Know-Your-Customer (KYC) and Know-Your-Business (KYB) controls to verify users and partners and help prevent money laundering and other illicit activity. The overview describes how these KYC/KYB programs anchor fraud prevention and regulatory compliance across the platform.
Perlman’s LinkedIn profile lists him as Global Chief Compliance Officer at Binance since January 2023, leading a worldwide compliance program. His prior roles include Chief Operating Officer and Chief Compliance Officer at Gemini, Managing Director/Global Head of Financial Crimes, Global Head of Special Investigations at Morgan Stanley, Assistant U.S. Attorney in the Eastern District of New York, and Division Counsel at the Drug Enforcement Administration (DEA).
