Illicit Crypto Flows Found Across Major Exchanges

An investigation by the International Consortium of Investigative Journalists (ICIJ) has revealed recurring patterns of illicit cryptocurrency movements across exchanges, brokers, and cash-out services. Dubbed “The Coin Laundry,” the investigation highlights a widening gap between blockchain recording and meaningful analysis by platforms and investigators.

The ICIJ found that more than $600 million flowed from Huione Group, a Cambodian financial institution flagged by the U.S. Treasury for money laundering, into accounts at Binance and OKX, even as both platforms faced U.S. enforcement actions. Between July 2024 and July 2025, over $408 million moved from Huione to Binance, with approximately $1 million flowing daily in July 2025. At least $226 million flowed from Huione to OKX customer accounts between February and July 2025.

Tracing illicit funds is complicated by the use of anonymous wallets and “swappers,” significantly slowing investigations. Former compliance staff at major platforms reported struggling to keep pace with sophisticated criminals.

OKX rejected the portrayal of crypto platforms as money laundering havens, stating it “welcomes scrutiny” and swiftly acts on detected risks. The exchange emphasized that the reported flows represent a small fraction of overall activity.

Another exchange, KuCoin, asserted its rigorous anti-money laundering and counter-terrorism financing program. Decrypt has contacted Tether, Binance, Coinbase, Kraken, and Bybit for comment.

Experts at TRM Labs observed repeating behavioral patterns in illicit fund movements, often involving intermediaries and OTC brokers. These patterns reflect common laundering typologies rather than centrally coordinated operations.

TRM’s analysis indicates that illicit actors and facilitators interact through overlapping transactional relationships across jurisdictions and asset types. While some groups demonstrate sustained coordination, most establish opportunistic linkages based on shared infrastructure or mutual convenience.

The ICIJ’s findings arrive as regulators worldwide grapple with uneven enforcement and limited cross-border coordination in the cryptocurrency sector.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.