A joint report published by The New York Times and the International Consortium of Investigative Journalists (ICIJ) on November 17 revealed that major cryptocurrency exchanges facilitated the inflow of approximately $28 billion in illicit funds over two years.
According to the report, leading exchanges such as Binance, OKX, and Bybit have become major flow points for funds generated by North Korean hacker groups, Southeast Asian-based fraud networks, and globally widespread “pig butchering” investment scams.
Binance's Continued Transactions with Risky Entities
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 over $400 million in inflows into the exchange came from high-risk entities, particularly Cambodia-based Huione.
Concerns Over Regulatory Loosening
The report also cited US President Donald Trump’s signing of a $2 billion cooperation agreement with Binance and his pardon of the company’s founder, Changpeng Zhao (CZ), as developments that raised concerns that regulations could be loosened.
Market Vulnerability and Intensifying Oversight
The New York Times investigation reveals that the crypto market remains significantly vulnerable to illicit fund flows and that regulatory pressure is likely to intensify in the coming period. Industry experts warn that such findings could pave the way for stricter global oversight.