Crypto Exchanges Binance, OKX Used By Criminals To Disguise Illicit Funds, ICIJ Investigation Finds
A latest report by the International Consortium of Investigative Journalists (ICIJ), titled “The Coin Laundry,” has unveiled proof of felony actions carried out by main cryptocurrency exchanges, aimed toward evading world regulatory scrutiny.
The investigation alleges that cash launderers, linked to drug trafficking, Southeast Asian rip-off facilities, and North Korean hackers, have been leveraging main exchanges to facilitate their illicit operations.
Crypto Money Laundering Operations Linked To Huione Group
The ICIJ’s evaluation highlights that, as just lately as July 2025, the Huione Group, a Cambodian monetary entity flagged by US authorities as a “major cash laundering concern,” transferred roughly $1 million price of Tether’s USDT stablecoin each day to accounts at Binance.
This circulate amounted to over $408 million from Huione to Binance buyer accounts between July 2024 and July 2025. Notably, these transactions allegedly occurred whereas Huione was below the supervision of two court-appointed screens, established as a part of Binance’s plea take care of US regulators in November 2023.
The report goes on to disclose that not less than $226 million additionally shifted into accounts at OKX, one other main crypto change, throughout the 5 months following OKX’s responsible plea in February for working an unlicensed money transmitter.
ICIJ’s report additionally explores a community of money desks and courier providers that function in cities equivalent to Hong Kong, Toronto, London, and Istanbul, permitting people to anonymously convert cryptocurrency exterior the view of monetary authorities. These areas have emerged as largely unregulated hotspots for laundering cash.
In a separate investigation, ICIJ examined an alleged pyramid scheme orchestrated by Vladimir Okhotnikov, who’s accused of misappropriating not less than $340 million from buyers between 2020 and 2022 by a fraudulent investment platform.
Insufficient Regulatory Oversight?
The report highlighted that these illicit transactions usually traverse nameless digital wallets and instruments like “swappers,” which allow customers to robotically change cryptocurrencies with out identification verification, complicating legislation enforcement efforts to hint illicit activities.
A dozen former compliance staff from main exchanges, together with OKX and Binance, reported to ICIJ that they wrestle to maintain tempo with “more and more refined criminals.”
Regulators all over the world are chargeable for making certain that cryptocurrency companies adjust to anti-money laundering laws. However, the report asserts that the present panorama is characterised by “fragmented enforcement,” leading to “inadequate oversight,” in line with the ICIJ.
According to ICIJ’s findings, authorities have imposed not less than $5.8 billion in fines and penalties towards cryptocurrency exchanges. Meanwhile, client and enterprise losses from crypto-related crimes are escalating.
In the United States alone, the FBI estimates that Americans misplaced roughly $9.3 billion to crypto crimes in 2024, a 67% improve from the earlier 12 months.
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