Global Investigation Exposes $4 Billion Crypto Crime Network

The International Consortium of Investigative Journalists (ICIJ) has unveiled a massive investigation revealing how cryptocurrency exchanges facilitate billions of dollars in criminal activity. The 10-month probe, called “The Coin Laundry,” exposes a shadow financial system that profits from crime while leaving victims with little recourse.

The investigation involved 113 journalists from 37 media partners in 35 countries who analyzed tens of thousands of cryptocurrency transactions. Their findings show how major exchanges moved money for drug cartels, human traffickers, and North Korean hackers despite previous guilty pleas for money laundering violations.

Criminal Networks Span the Globe

The investigation uncovered criminal enterprises operating worldwide. North Korean hackers, Chinese and Russian gangs involved in people trafficking, and Mexico’s violent Sinaloa drug cartel all used cryptocurrency to move their profits.

Cambodia’s Huione Group emerged as a central figure in the investigation. U.S. authorities flagged the company as a “primary money laundering concern” in May 2025. Despite this warning, Huione continued sending approximately $1 million worth of cryptocurrency daily to major exchange accounts.

The scope of Huione’s operations is staggering. Between August 2021 and January 2025, the group laundered at least $4 billion in criminal proceeds. This included $37 million from North Korean cyber attacks and $36 million from investment scams known as “pig butchering.”

Major Exchanges Under Scrutiny

The world’s largest cryptocurrency exchanges played central roles in moving dirty money. Binance, despite being under court supervision after a 2023 guilty plea, received over $408 million from Huione between July 2024 and July 2025.

OKX, another major exchange, continued processing suspicious funds even after pleading guilty to operating an illegal money transmitter in February 2025. The investigation found that $226 million flowed from Huione into OKX customer accounts during the five months following their guilty plea.

The investigation also revealed specific criminal connections. A Binance address linked to a Sinaloa cartel money launderer received more than $700,000, with nearly all funding coming from Coinbase accounts. Meanwhile, Chinese fentanyl traffickers moved funds through

Source: icij.org

OKX, and a Russian money launderer working for North Korea’s weapons program maintained an active account at HTX exchange.

Underground Cash Networks

Beyond traditional exchanges, the investigation exposed a network of “crypto-to-cash” operations that help criminals convert digital currency into physical money without oversight. These services operate in major cities including Miami, New York, London, and Toronto.

The operations often use messaging apps like Telegram to arrange transactions. In one test transaction, a Toronto Star reporter sent 2,000 tether to a service called 001k. Instead of requiring identification, the service only asked for a photo of a five-dollar bill’s serial number for verification during the cash handoff.

Hong Kong emerged as a major hub for these activities. Cash desks in the city processed at least $2.5 billion in cryptocurrency transactions last year alone. The 001k operation has received more than $14.8 billion in cryptocurrency since August 2022.

Devastating Impact on Victims

The human cost of these criminal networks is severe. American victims lost $9.3 billion to crypto crimes in 2024, representing a 67% increase from the previous year. This figure equals roughly half the amount Bernie Madoff collected during his decades-long Ponzi scheme.

Individual stories highlight the personal devastation. Japanese victim Asako Nishizaki lost her home after paying over $30,000 to romance scammers between March 2024 and June 2025. The financial loss strained her relationship with her two sons, who didn’t speak to her for nearly a year.

Law enforcement officials struggle to help victims recover their funds. Many criminals operate from countries beyond their jurisdiction, making asset recovery nearly impossible. Brooklyn District Attorney Alona Katz, who leads a cryptocurrency crime unit, described explaining these limitations to elderly victims preparing to file bankruptcy as “more devastating than I can even put a word on.”

Regulatory Challenges Persist

The investigation highlights significant gaps in cryptocurrency oversight. While authorities worldwide have levied at least $5.8 billion in fines against trading platforms, the industry continues facilitating criminal activity with limited consequences.

Former compliance workers at major exchanges told investigators they couldn’t keep pace with sophisticated criminals. The complex nature of cryptocurrency transactions, combined with anonymous digital wallets and automated switching services, makes tracing funds extremely difficult.

Recent political developments have complicated enforcement efforts. President Trump has rolled back enforcement actions against the crypto industry and pardoned Binance founder Changpeng Zhao on October 23, 2025, who served prison time for money laundering violations. This shift occurs as the industry facilitated tens of trillions of dollars in trading volume last year.

The investigation also revealed that some major blockchain analytics firms, which position themselves as industry watchdogs, hesitate to publicly identify mainstream exchanges in connection with dirty money. This reluctance further limits transparency in an already opaque industry.

The Shadow Economy’s Reach

The ICIJ investigation demonstrates how cryptocurrency has enabled a parallel financial system that operates beyond traditional regulatory oversight. This shadow economy processes criminal proceeds faster and with greater anonymity than conventional money laundering methods.

The investigation found that crypto-to-cash services violate anti-money laundering laws in multiple jurisdictions. However, enforcement remains inconsistent due to the global nature of these operations and varying regulatory frameworks across countries.

The scale of illicit activity continues growing. Cryptocurrency crime continues expanding globally, with estimates suggesting 2024 saw record-breaking illicit cryptocurrency volumes potentially exceeding $51 billion when all criminal activity is accounted for.

Digital Reckoning

The Coin Laundry investigation reveals how the cryptocurrency industry has created powerful tools for criminals while leaving victims without meaningful protection. Despite promises of transparency through blockchain technology, the reality shows a system that enables rather than prevents financial crime.

As governments worldwide struggle to adapt regulations to this rapidly evolving technology, the investigation serves as a stark reminder of the urgent need for stronger oversight. The evidence suggests that without significant regulatory intervention, cryptocurrency will continue serving as the backbone of an increasingly sophisticated global criminal economy.