Summary
- TRM Labs reported that CoinEx was linked to over $3.84 billion in crypto transactions with more than 60 Iranian platforms over a span of seven years.
- The exchange countered these claims, stating that it functions as a neutral global platform for general users without any formal connections to Iranian entities.
- This dispute arises amidst U.S. enforcement actions, which include sanctions on Iran’s largest crypto exchange and a seizure of $1 billion in Bitcoin.
On Thursday, CoinEx, a crypto exchange based in Seychelles, rejected accusations that it knowingly facilitated the transfer of billions in sanctioned Iranian funds. This response follows a report from The Wall Street Journal, which was heavily influenced by findings from TRM Labs.
TRM Labs released a blog post that illustrated connections between CoinEx and over 60 Iranian platforms, including Nobitex, which recently faced U.S. sanctions for allegedly supporting terrorist financing, evading sanctions, and aiding ransomware activities.
CoinEx has maintained a close relationship with what is identified as Iran’s largest crypto exchange, reportedly gaining exposure to Iranian military entities while acting as Nobitex’s “single largest external counterparty,” according to TRM.
In defense of its position, CoinEx emphasized its neutral stance, asserting that it serves ordinary users globally and lacks any formal affiliations with Iranian authorities or sanctioned groups.
“We strongly reject any narrative that blurs the lines between typical user actions and state-level sanctions evasion, as well as any implication that the flow of funds on our platform indicates knowledge of or participation in illicit activities,” CoinEx stated in a post on X platform.
According to TRM, over the last seven years, CoinEx has been involved in more than $3.84 billion worth of transactions with a mining pool associated with its parent company, ViaBTC. TRM characterized CoinEx as “the single biggest lifeline for Iran’s cryptocurrency ecosystem.”
TRM further suggested that CoinEx's dealings with over 60 Iranian entities indicate that “this connectivity is unlikely to be independent market behavior.”
Additionally, TRM claimed that CoinEx was implicated in a year-long money laundering scheme that concluded this month, which saw the exchange receive $67 million linked to Iran’s central bank through a complex network of blockchain transfers.
In response to Nobitex's sanctions, CoinEx stated that it promptly enhanced its measures to identify Iranian users, implement geo-fencing, monitor suspicious transactions, and increase actions against accounts utilizing the platform for illegal activities.
Recent reports indicate that the Iranian government has begun accepting Bitcoin for payments related to transit through the Strait of Hormuz, a vital route for 20% of the world’s oil supply. Meanwhile, U.S. officials have remained vigilant, according to Treasury Secretary Scott Bessent.
Just days before the sanctions on Nobitex and three other exchanges, Bessent reported that the U.S. had seized $1 billion in cryptocurrency from entities affiliated with Iran, suggesting that some individuals “might not have realized that their wallet had been seized.”