Investigative Reporter Group ICIJ Exposes the Coin Laundry: Crypto's Criminal Financial System
The International Consortium of Investigative Journalists (ICIJ) launched its Coin Laundry investigative series, tracing illicit funds through major cryptocurrency exchanges including Binance, OKX, Coinbase, Kraken, Bybit, and Kucoin.
More than 100 journalists from over 35 countries collaborated on the investigation. Media partners included The New York Times, Le Monde, The Toronto Star, Malaysiakini, The Indian Express, and the Australian Financial Review.
The investigation uncovered illicit activity linked to global criminal enterprises, such as North Korean hackers, Chinese and Russian gangs involved in people trafficking and fentanyl distribution, Mexico's Sinaloa cartel, as well as crypto-cash storefronts operating in Ukraine and Dubai.
Findings suggest that blockchain technology's speed, anonymity, and global reach have facilitated the creation of a shadow financial system operating beyond the reach of regulators and law enforcement.
Criminal cartels can transfer illicit funds using cryptocurrencies like dollar-pegged stablecoins, thereby avoiding traditional cash smuggling methods.
The report raises questions regarding the potential complicity of major crypto exchanges and highlights challenges regulators face in keeping pace with a rapidly evolving and opaque market.
Blockchain analytics firms monitoring illicit funds play a role by working with exchange compliance teams, and ICIJ also relied on independent investigators for the series.
Coindesk reached out to Binance, OKX, Coinbase, Kraken, Bybit, and Kucoin for comment regarding the findings.
