CoinEx processed $3.8 billion in Iran-linked funds, acting as crypto gateway: TRM Labs
CoinEx has also interacted with terrorist organizations, including the Islamic Revolutionary Guard Corps, and sanctioned Russian entities.
CoinEx, a cryptocurrency exchange, processed approximately $3.8 billion in funds linked to Iran, effectively serving as a financial gateway for the country, according to a new report from blockchain analytics firm TRM Labs. Beyond Iran-linked transactions, the exchange also allegedly facilitated interactions with designated terrorist organizations, including the Islamic Revolutionary Guard Corps (IRGC), as well as sanctioned Russian entities.
TRM Labs, which provides blockchain intelligence to governments and financial institutions, identified CoinEx as a significant conduit for illicit financial flows. The findings raise serious compliance concerns, as exchanges operating internationally are generally required to adhere to anti-money laundering (AML) protocols and sanctions screening measures enforced by regulators such as the U.S. Office of Foreign Assets Control (OFAC).
The report adds to growing regulatory scrutiny of cryptocurrency exchanges that allegedly enable transactions for sanctioned nations and organizations. Iran has long used cryptocurrency as a tool to circumvent international sanctions, and exchanges found to have facilitated such activity have previously faced significant legal consequences, including heavy fines and criminal charges from U.S. authorities.
Market observers will be watching closely to see whether U.S. or international regulators take enforcement action against CoinEx following the TRM Labs disclosure. The exchange's response to these allegations, as well as any potential investigations by financial crime authorities, will be critical factors to monitor in the coming weeks.
Source: The Block
