A joint report released on November 17th by The New York Times and the International Consortium of Investigative Journalists (ICIJ) revealed that major cryptocurrency exchanges facilitated the inflow of approximately $28 billion in illicit funds over two years.
New York Times: $28 billion in illegal funds flowed into global stock exchanges
According to the report, major exchanges such as Binance, OKX, and Bybit are major distribution points for funds generated by North Korean hacker groups, Southeast Asia-based fraud networks, and the globally prevalent “pig butchering” investment scam.
The investigation revealed that Binance continued to accept transactions from risky entities despite previously pleading guilty to money laundering and sanctions violations and paying a $4.3 billion fine. It was also reported that more than $400 million in inflows to the exchange came from high-risk companies, particularly from Cambodia-based Huione.
The report also cited US President Donald Trump's signing of a $2 billion cooperation agreement with Binance and the pardon of Binance founder Zhao Changpeng (CZ) as moves that raise concerns about possible deregulation.
The NYT investigation found that the cryptocurrency market remains highly vulnerable to illicit financial flows and is likely to face increased regulatory pressure in the future. Industry experts have warned that the findings could pave the way for increased global surveillance.
*This is not investment advice.
