CoinEx denied allegations on Thursday that the Seychelles-based crypto exchange knowingly served as a conduit for billions of dollars in sanctioned Iranian funds. TRM Labs uncovered over $3.84 billion in crypto flows between CoinEx and more than 60 sanctioned Iranian platforms over a seven-year period, according to a report published by The Wall Street Journal. The exchange rejected the allegations, arguing that it operates as a neutral global platform serving ordinary users worldwide with no official ties to Iranian entities. The confrontation comes amid intensified U.S. enforcement actions, marked by sanctions against Nobitex, described as Iran's largest crypto exchange, earlier this month and a $1 billion Bitcoin seizure from entities linked to Iran announced by Treasury Secretary Scott Bessent days before the Nobitex sanctions.
TRM Labs Alleges $3.84 Billion in Flows Between CoinEx and Iranian Platforms
TRM Labs published a blog post drawing connections between CoinEx and more than 60 Iranian platforms, including Nobitex, which was slapped with U.S. sanctions earlier this month for allegedly facilitating terrorist financing, sanctions evasion, and ransomware payments. According to TRM, CoinEx has shared a close connection with Nobitex for years, gaining on-chain exposure to Iranian military entities while also serving as Nobitex's "single largest external counterparty."
Over the past seven years, more than $3.84 billion has flowed between CoinEx and a mining pool owned by the exchange's parent company, ViaBTC, according to TRM's data. The firm described CoinEx as "the single biggest lifeline for Iran's cryptocurrency ecosystem." Because CoinEx has transaction exposure to more than 60 entities operating in Iran, TRM argued that "this connectivity is unlikely to be independent market behavior."
TRM alleged that CoinEx's platform was subject to a year-long money laundering scheme that ended this month, in which the exchange received $67 million derived from Iran's central bank through a web of transfers extending across several blockchains.
CoinEx Denies Knowledge of Serving Sanctioned Entities
CoinEx pinned its defense on neutrality, asserting that it operates as a global exchange that serves ordinary users worldwide, with no official ties to Iranian authorities or sanctioned entities. "We firmly reject any narrative that conflates ordinary user activity with state-level sanctions evasion, and any inference that equates on-chain fund flows with platform knowledge of, support for, or participation in illicit activity," CoinEx said in an X post.
On X, CoinEx said that it moved quickly after Nobitex was sanctioned to strengthen identification of Iranian users, implement comprehensive geo-fencing, detect suspicious transactions, and ramp up "action against accounts using the platform for illicit activity." CoinEx debuted nearly a decade ago in Hong Kong.
U.S. Treasury Announces $1 Billion Cryptocurrency Seizure from Iran-Linked Entities
Treasury Secretary Scott Bessent said the U.S. had seized $1 billion worth of cryptocurrency from entities linked to Iran days before Nobitex was sanctioned alongside three other exchanges. He posited at the time that some individuals "might not have realized that their wallet had been grabbed."
Recent reports suggest that the Iranian government has accepted Bitcoin as payment for transiting the Strait of Hormuz, through which 20% of the world's oil supplies once flowed.
FAQ
What did TRM Labs allege about CoinEx's connections to Iranian platforms?
TRM Labs alleged that CoinEx facilitated over $3.84 billion in crypto flows to more than 60 sanctioned Iranian platforms over a seven-year period. The firm described CoinEx as Nobitex's "single largest external counterparty" and "the single biggest lifeline for Iran's cryptocurrency ecosystem." TRM also alleged that CoinEx received $67 million derived from Iran's central bank through a year-long money laundering scheme that ended this month.
How did CoinEx respond to the allegations on Thursday?
CoinEx denied the allegations on Thursday, stating that it operates as a neutral global platform serving ordinary users worldwide with no official ties to Iranian authorities or sanctioned entities. The exchange said it "firmly reject[s] any narrative that conflates ordinary user activity with state-level sanctions evasion." CoinEx stated that it moved quickly after Nobitex was sanctioned to strengthen identification of Iranian users, implement geo-fencing, detect suspicious transactions, and increase action against accounts using the platform for illicit activity.
What enforcement actions did the U.S. Treasury take against Iranian crypto entities?
Treasury Secretary Scott Bessent announced that the U.S. seized $1 billion worth of cryptocurrency from entities linked to Iran days before Nobitex was sanctioned. Nobitex was sanctioned earlier this month alongside three other exchanges for allegedly facilitating terrorist financing, sanctions evasion, and ransomware payments.
