In February, OKX, one of the world’s largest cryptocurrency exchanges, pleaded guilty in the United States to operating an illegal money transmitter, and agreed to retain a court-mandated compliance consultant.
The Coin Laundry findings reveal how crypto companies profit from illicit activity with little fear of consequences while leaving those harmed with little recourse.
The FBI estimates Americans lost $9.3 billion to crypto crimes in 2024, a 67% increase from the previous year.
The routine use of brand-name exchanges by money launderers is just one of the findings from The Coin Laundry.
The U.S. Treasury Department has labeled Huione a money laundering concern, and the Treasury finalized its blacklist on Huione on Oct. 14.
OKX paused all interactions between OKX wallets and Huione, until it can be established definitively that the account in question is being used exclusively for legitimate transactions.
The exchange also said that it has been working with the U.S. government on the matter, sometimes initiating engagement, and that it proactively worked with law enforcement on this matter, being privately thanked for its efforts.
OKX has been actively cooperating with law enforcement and FinCEN on this matter.
The investigation also highlights the flows surrounding Huione.
Over roughly the past year, Huione funneled hundreds of millions of USDT to customer deposit addresses at Binance and OKX, with Binance receiving at least $408 million and OKX at least $226 million from Huione between July 2024 and July 2025.
Binance maintains that security and compliance are fundamental pillars of its operation, and it said it cannot block incoming crypto transactions, a core feature of digital asset transfers.
OKX said it has paused interactions with Huione after the Treasury finalized its blacklist and noted proactive cooperation with law enforcement and regulatory authorities.
Additionally, the probe traced ether flows tied to THORChain—an activity that led to a spike of nearly $900 million in ether deposits to five Binance addresses within a short window.
ChainArgos, the transaction tracing firm used by the investigation, found these patterns as part of examining large-scale money flows routed through major exchanges.
The report underscores ongoing challenges for regulators and law enforcement as they seek to curb illicit crypto activity without stifling legitimate innovation.
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