Mohammedia – Major global cryptocurrency exchanges continued to handle huge volumes of suspicious funds even after pleading guilty to U.S. charges and promising to clean up their operations, according to a sweeping new investigation by the International Consortium of Investigative Journalists.
The findings raise uncomfortable questions about whether the industry is willing, or even able, to stop being a playground for money launderers, scam rings and organized crime networks.
ICIJ reporters traced hundreds of millions of dollars in tether and other digital currencies into customer deposit accounts at leading platforms, including Binance and OKX, during periods when both companies were meant to be under strict court supervision.
One of the most striking examples was that at least $408 million in tether flowed from Huione Group—a Cambodia-based financial hub tied to Chinese scam syndicates—into Binance accounts between mid-2024 and mid-2025.
OKX customer wallets received at least $226 million from the same source, including more than $161 million after U.S. officials publicly labeled Huione a primary money-laundering concern.
These flows continued even after Binance founder Changpeng “CZ” Zhao pleaded guilty in late 2023 and agreed to step aside as CEO.
He was later pardoned by President Donald Trump, who declared the Biden administration’s “war on crypto” finished. But ICIJ’s analysis suggests the underlying problems didn’t end with the political messaging.
Former compliance workers at several exchanges described an internal environment marked by confusion and constant pressure, with crushing volumes of alerts, limited investigative authority, and a constant tension between compliance costs and the revenue generated by high-speed, high-volume trading.
Several said they felt overwhelmed and under-resourced, with little time to meaningfully scrutinize suspicious transactions. One former analyst called the workload “insane,” saying teams were pushed toward speed over accuracy.
A global shadow system and the victims left behind
The investigation tracks the fingerprints of crime networks operating on every continent. North Korean hackers, Chinese scam compounds, Russian laundering groups, and even cartels linked to the Sinaloa organization all moved digital assets through major exchanges.
In one case, more than $900 million in ether surged toward Binance over a 10-day window after passing through THORChain—part of a larger laundering operation tied to a record-setting heist from Dubai-based exchange Bybit.
While the numbers are staggering, the most painful stories come from ordinary people. Victims across Canada, Japan, the United States and elsewhere described losing life savings, homes, and retirement funds to meticulously crafted online scams that ultimately funneled deposits through mainstream exchanges.
Many said police simply didn’t have the tools or training to follow the money. “My case is sitting in a filing cabinet,” one Canadian victim told reporters. Another said the ordeal “ruined me as a person.”
Regulators are struggling as well. Europe has tightened rules, but U.S. oversight has weakened under Trump, who has cast crypto as a pillar of innovation. Exchanges, meanwhile, often argue they cannot block deposits and are doing their best with limited visibility.
But ICIJ’s findings paint a stark picture: a global financial system moving trillions of dollars, where criminals hide in plain sight and victims rarely see justice.
The investigation’s conclusion is blunt. Without stronger oversight, deeper international cooperation, and a genuine commitment from exchanges to stop prioritizing volume over vigilance, the world’s biggest crypto platforms will remain an easy on-ramp for dirty money.
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