Overview
An International Consortium of Investigative Journalists (ICIJ) investigation traced tens of thousands of transactions and found major crypto trading platforms awash with dirty money. The report notes high-profile political figures and public statements surrounding the crypto industry in the context of legal actions and pardons.
The Biden administration’s war on crypto is over.
Key figures and events
- Changpeng “CZ” Zhao, founder of Binance, faced legal scrutiny and stepped down as CEO following guilty pleas related to operating without basic safeguards to prevent money laundering.
- Binance agreed to reforms after pledges to change its practices while remaining under court supervision via monitors.
- OKX, another large crypto exchange, pleaded guilty in the United States to related compliance concerns.
Money flows and intermediaries
- Between the guilty pleas and the pardon, Binance reportedly profited from hundreds of millions of dollars in cryptocurrency transactions linked to organized crime groups.
- ICIJ’s analysis identified more than $408 million in digital currency flowing into Binance accounts from Huione Group, a Cambodia-based financial firm used by Chinese crime gangs to launder proceeds from human trafficking and large‑scale scams.
Context and implications
The investigation underscores concerns about money laundering, terrorism financing, and cybercrime exposure in the crypto ecosystem, and it highlights the ongoing role of regulatory scrutiny in shaping industry practices.
In February, OKX, another of the world’s largest cryptocurrency exchanges, pleaded guilty in the U.S.
Author’s note
This summary preserves the core claims and cited figures from the original investigation while removing extraneous details not present in the primary source.
Author summary
ICIJ links billions in crypto flow to crime networks, illustrating persistent AML challenges and regulatory pressure across major exchanges.