Global Probe finds pattern of illegal cryptocurrencies moving between major exchanges

A series of investigations conducted by the International Consortium of Investigative Journalists (ICIJ) found that illegal actors are moving large amounts of cryptocurrencies through exchanges, brokers, and cash conversion services, a recurring pattern that continues despite some platforms operating under U.S. penalties and court-appointed monitors.

The ICIJ report, called “Laundromats,” points out that the technological gap with laundromats is widening. blockchain Record what researchers and platforms can meaningfully process.

The consortium reports that when transfers are routed through anonymous wallets or “swappers,” tracking is slow and resource-intensive, complicating exchanges and law enforcement efforts to track transactions in real time.

Former compliance officers at major platforms also agree on this issue and are working with ICIJ. star of toronto They “could barely keep up with the savvy criminals.”

Wione money laundering

One of the most detailed cases concerns the Huione Group, a Cambodian financial institution that was designated as a “major money laundering concern” by the U.S. Treasury Department in May.

ICIJ found that Fuione “continued to route a significant amount of tethers almost unabated.” stable coin USDT to Binance and OKX customer accounts even after designation.

More than $408 million was transferred from Fuione to Binance accounts from July 2024 to July 2025, including approximately $1 million per day in July 2025, during which time Binance remained under the control of two court-appointed monitors following a 2023 plea deal for anti-money laundering violations.

At least $226 million flowed from Fuione into OKX customer accounts between February and July 2025 after OKX pleaded guilty to operating unlicensed money transfer machines in the United States.

OKX said it “welcomes scrutiny” on how exchanges deal with illicit finance and disputed the impact of the investigation, but rejected the idea that crypto platforms serve as havens for money laundering.

“When a credible risk is detected, we act quickly, including suspending interactions, blocking transfers, and assisting with criminal investigations,” the spokesperson said. decryption.

The flows cited in ICIJ’s report are “only a small portion” of overall activity at the exchange, the spokesperson added.

KuCoin, one of the exchanges named in ICIJ’s Cryptocurrency Over-the-Counter Investigation, issued a statement. decryption The company said it “operates a rigorous and continuously evolving AML/CTF program” in line with the expectations of global regulators.

decryption has reached out to Tether, Binance, Coinbase, Kraken, and Bybit for comment and will update this article if we receive a response.

structure and flow

The findings come as regulators around the world continue to impose penalties on exchanges, struggling with uneven enforcement and limited cross-border coordination.

said Ari Redboard, a former Treasury official who now works as global policy director for blockchain intelligence company TRM Labs. decryption Their research and data show repeated patterns of behavior as illicit funds move between services, often involving “certain intermediaries, OTC brokers, or cross-chain services.”

“These patterns often reflect common laundering typologies rather than fixed or standardized ‘routing templates,’” Redboard explained. “In other words, illegal actors often exploit the same compliance weaknesses or high-risk service providers, so flows can appear structurally similar even if they are not centrally coordinated.”

Redboard said TRM’s analysis supports the view that laundering activities are networked rather than isolated, noting that illegal actors and intermediaries interact through “overlapping business relationships across jurisdictions and asset types.”

He said some groups, such as pig butchers, cartel-aligned brokers and North Korean actors, have shown more “persistent collaboration,” but most others have formed “opportunistic coalitions” built around “shared infrastructure and mutual convenience.”

“The recurring patterns we see are best understood as emerging behaviors within an adaptive ecosystem rather than a consistent operational structure,” Redboard said.