Global Probe Identifies Recurring Illicit Crypto Flows Across Major Exchanges
The International Consortium of Investigative Journalists (ICIJ) - through its Coin Laundry investigation - has identified recurring patterns of illicit cryptocurrency flows across multiple exchanges, brokers, and crypto-to-cash storefronts worldwide. These illicit flows frequently utilize anonymous wallets and swappers, which complicate tracing and hinder real-time enforcement efforts.
One notable example involves the Huione Group, designated as a "primary money laundering concern" by the U.S. Treasury in May. Between July 2024 and July 2025, Huione routed over $408 million to Binance. Additionally, from February to July 2025, it funneled at least $226 million to OKX. Both Binance and OKX have faced U.S. enforcement actions: Binance operates under two court-appointed monitors after pleading guilty to anti-money laundering (AML) violations in 2023, and OKX pleaded guilty to operating an unlicensed money transmitter.
Despite penalties and ongoing monitoring, these illicit flows continue, though exchanges maintain they represent a small fraction of their overall activity. KuCoin, another major exchange, stated it upholds a rigorous AML and counter-terrorism financing (CTF) program aligned with regulatory expectations.
TRM Labs analyst Ari Redbord commented that the observed patterns reflect typical laundering typologies and suggest networked, cross-jurisdictional activity rather than a single centralized criminal operation.
The investigation underscores significant regulatory challenges, such as uneven enforcement across jurisdictions and limited cross-border coordination. It also highlights a gap between the transparency of on-chain records and the limited capabilities of investigators to fully analyze and act upon this data.
