Crypto exchange CoinEx processed an estimated $3.8 billion in funds linked to Iran-based entities, according to blockchain intelligence firm TRM Labs.
The firm found that CoinEx interacted with terrorist organizations including the Islamic Revolutionary Guard Corps, as well as sanctioned Russian entities. The exchange effectively served as a gateway for moving funds that couldn’t pass through traditional banking channels.
The sheer volume raises pointed questions about CoinEx’s compliance program. Sanctions screening is table stakes for any regulated exchange, and $3.8 billion in flagged transactions suggests either a failure of detection or a lack of will to act.
TRM Labs has tracked illicit crypto flows for years, and exchanges that serve as money laundering bottlenecks tend to face regulatory consequences eventually. This report puts CoinEx squarely in that category.
