CoinEx Exposed: Sanctioned Funds Flow Through Exchange

The recent price crash of Solana to multi-year lows has highlighted the vulnerabilities in the crypto market, but there's more to the story. A blockchain analysis by TRM Labs revealed that funds tied to North Korea's Lazarus Group, which stole $1.5 billion from Bybit in February 2025, were laundered through CoinEx and eventually ended up in wallets linked to Iran's central bank.

According to The Wall Street Journal, investigators tracing the funds found that over $3.84 billion has been moved through CoinEx since 2019, with direct transactions involving accounts tied to the Islamic Revolutionary Guard Corps. This is not a story about a few rogue individuals exploiting a temporary loophole but rather a complex infrastructure built over years.

CoinEx's role in this scheme is particularly concerning as it shows that even after being warned of its exposure, the exchange failed to take adequate measures to prevent sanctioned transactions. The Journal reported that $67 million linked to the Central Bank of Iran flowed through CoinEx between June 2025 and June 2026.

The TRM Labs analysis highlights the weaknesses in current regulations, which allow offshore exchanges to operate with minimal oversight. As The Block reported, CoinEx's Iranian exposure spans more than 60 linked entities, raising questions about the effectiveness of regulatory bodies in addressing these issues.