- TRM Labs alleges over $3.84 billion in crypto flowed between CoinEx and more than 60 sanctioned Iranian platforms over seven years.
- The Seychelles-based exchange CoinEx firmly denies the allegations, stating it is a neutral global platform with no official ties to Iranian entities.
- The report follows recent U.S. enforcement actions, including sanctions against Iran‘s largest crypto exchange and the seizure of $1 billion in cryptocurrency linked to Iran.
A significant controversy erupted this week as CoinEx denied allegations that it knowingly served as a conduit for billions in sanctioned Iranian funds, pushing back against a The Wall Street Journal report based on analysis from TRM Labs. Consequently, the crypto analytics firm published a blog post connecting the exchange to over 60 Iranian platforms. TRM Labs described CoinEx as the “single biggest lifeline for Iran’s cryptocurrency ecosystem.”
However, CoinEx defended its neutrality in an X post, arguing it serves ordinary users worldwide. The firm rejected any narrative conflating user activity with state-level sanctions evasion. Meanwhile, the analytics firm claimed the exchange gained on-chain exposure to Iranian military entities.
TRM Labs data shows more than $3.84 billion flowed between CoinEx and its parent company’s mining pool. The firm argued this connectivity is unlikely to be independent market behavior. Additionally, TRM alleged CoinEx was subject to a year-long $67 million money laundering scheme from Iran’s central bank.
Consequently, CoinEx stated it moved quickly to strengthen identification of Iranian users after sanctions. The exchange implemented geo-fencing and ramped up action against illicit accounts. This confrontation occurs amid a broader U.S. crackdown marked by sanctions and seizures.
Treasury Secretary Scott Bessent recently said the U.S. seized $1 billion in crypto from Iran-linked entities. He posited some individuals might not have realized their wallet was grabbed. This enforcement follows sanctions against Nobitex, Iran’s largest crypto exchange, earlier this month.
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