Topline
Top crypto exchanges like Binance and OKX profited millions from transactions involving illegal funds from organised crime groups over the last two years, an ICIJ report shows, staining a crypto industry as it moves into mainstream acceptance.
UKRAINE – 2023/06/15: In this photo illustration, U.S. Securities and Exchange Commission (SEC) logo is seen on a smartphone and Binance logo on a pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty Images
Key Facts
Top crypto exchanges like Binance and OKX made millions of dollars in fees off of transactions involving scammers, hackers and criminals, according to findings from the International Consortium of Investigative Journalists, which said it used “37 media partners in 35 countries gathered hundreds of cryptocurrency wallet addresses” to track suspect transactions.
At least $408 million in cryptocurrencies flowed into Binance from a notorious Cambodia-based group, the Huione Group, who the Treasury Department labeled as “a primary money laundering concern” while the company was under the scrutiny of court-appointed monitors, the report says.
Hundreds of millions flowed into OKX from Huione, while the exchange retained a court-mandated compliance officer after pleading guilty to operating an illegal money transmitting operation.
A Binance-hosted blockchain address connected to the infamous Sinaloa drug cartel in Mexico also received $700,000 in funds from accounts linked to crypto exchange Coinbase, and records also show blockchain transactions from crypto wallet addresses associated with North Korean cyber thieves, Russian money launderers and large-scale scam operations.
Forbes has reached out to Binance, OKX and Coinbase for comment.
What Are Crypto Exchanges?
Crypto exchanges are marketplace platforms that allow customers to buy, store and trade cryptocurrencies for other digital assets or fiat currencies. Acting similarly to bank accounts for digital assets, these exchanges bridge the gap between traditional markets and crypto markets. Binance is the world’s largest crypto exchange, exchanging more than $23 billion in transactions every day.