The cryptocurrency industry, once heralded as a transformative financial revolution, has been revealed to be a fertile ground for illicit activity on a massive scale. A detailed investigation by the International Consortium of Investigative Journalists (ICIJ), alongside 37 media partners in 35 countries, has traced tens of thousands of transactions and uncovered how some of the world’s largest crypto exchanges have facilitated billions of dollars in illicit flows, often linked to organized crime, human trafficking, and state-backed cyber theft.

This sprawling exposé, named The Coin Laundry, paints a troubling picture of an industry that, despite pledges to comply with anti-money laundering regulations, remains deeply entwined with criminal enterprises. It also underscores the role political decisions play in shaping the regulatory environment of digital currencies, with President Donald Trump’s pardon of Binance founder Changpeng “CZ” Zhao acting as a pivotal moment in this narrative.

The rise of Binance and its regulatory troubles

Changpeng Zhao founded Binance in 2017, quickly propelling it to become the world’s largest cryptocurrency exchange. Binance’s meteoric growth was fueled by low transaction fees, high-volume trading technology, and an aggressive willingness to list new digital assets. The exchange sponsored international sports events, including soccer and Formula 1 racing, and even facilitated the launch of digital tokens for global icons like Cristiano Ronaldo. By the end of 2023, Binance accounted for approximately half the trading volume across the largest cryptocurrency platforms-an estimated $18.4 trillion out of a total $35.2 trillion, according to CoinGecko research.

Yet, alongside this unprecedented growth, Binance drew scrutiny from US authorities. In November 2023, Zhao and Binance pleaded guilty to operating without essential anti-money laundering (AML) safeguards, exposing the exchange to allegations that it had authorized transactions for “terrorists, cybercriminals, and child abusers.” Zhao agreed to step down as CEO, pay a $50 million fine, and comply with court-mandated monitoring aimed at ensuring AML compliance.

Despite these measures, Binance continued to profit from transactions tied to notorious criminal networks. Between July 2024 and July 2025, analysis by ICIJ revealed that at least $408 million flowed to Binance accounts from Huione Group, a Cambodia-based firm used by Chinese crime syndicates to launder proceeds from human trafficking, online scams, and industrial-scale fraud operations.

OKX and the continued flow of dirty money

Binance was not alone. OKX, another major cryptocurrency exchange, also pleaded guilty in February 2024 to operating an illegal money transmitter and agreed to engage a court-appointed compliance consultant. Yet customer accounts at OKX continued to receive hundreds of millions of dollars from Huione, including over $161 million after the US Treasury Department labeled Huione a “primary money laundering” concern in May.

Ross Delston, a lawyer specializing in anti-money laundering law, remarked, “Normally that halts everything. If the federal government just told you that this entity is a high risk for money laundering or terrorist financing, you’d be crazy to continue any financial dealings with them.”

Both Binance and OKX claimed to cooperate with global law enforcement and monitor suspicious deposits. Binance said that crypto technology inherently limits its ability to block incoming funds, and OKX emphasized........

© Blitz