Secret exchange within HTX linked to $10 billion fraud network

important notes

• The nested Exchange setup allowed lesser-known platforms to hide behind HTX.
• Kyrex has reportedly processed $10 billion in illegal transactions since 2022.
• Some investors are currently suing Kyrex for more than $11 million.

Investigators discovered that the exchange Kyrrex operated within a larger exchange, HTX, and handled wallets associated with hackers, fraudsters, sanctioned parties, and criminal networks.

According to a report by the International Union of Investigative Journalists, “dozens of investors” lost approximately $6.5 million through wallets controlled by Kyrex.

The investigation report found that the Kyrex exchange was registered in Saint Vincent and the Grenadines and had a “nested” operation to hide its affiliation with HTX. This structure made it difficult for regulators to monitor the company’s operations.

Related article: Scam Alert: DeFi Protocol Balancer Faces Massive Exploit

Marius Hapkes, a lawyer representing the Dutch victims, said some of the Kyrex account openings were clearly fraudulent. They reportedly used false names, addresses and post office boxes.

However, the cryptocurrency exchange maintained that it enforces standard customer know-how and anti-money laundering procedures.

Hapkes’ customers are currently suing Kyrex for $11 million.

denial

Deceptive Kyrrex wallet moved nearly $10 billion in Bitcoin BTC 92006 dollars 24 hour volatility: 0.7% Market capitalization: $1.84 trillion Vol. 24 hours: $8.241 billion According to ICIJ, from February 2022 to July 2025.

However, Kyrex co-founder Mykhailo Romanenko told ICIJ that the platform acts as an intermediary and rejected even the label of a “nested exchange.”

Romanenko insisted that Kyrex is fully compliant with local regulations and is “cooperating with law enforcement and regulatory authorities.”

Meanwhile, investigators found clear red flags that should have been stopped, the report added.

According to ICIJ, authorities in several countries are currently investigating both Kyrex and HTX for potential money laundering failures and lack of oversight.

Cryptocurrency fraud has dogged the industry since its inception and continues to undermine blockchain technology.

Cryptocurrency investors lost more than $2.1 billion in more than 75 cases in the first half of 2025 alone.

In August, Binance CEO Richard Teng warned the public about a new type of crypto scam in which scammers access users’ data and assets through fake phone calls.

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