CoinEx and Bybit exposed as Iranian crypto channels

CoinEx processed $3.84B in Iran-linked funds since 2019, aiding sanctions evasion. Bybit was also tied to $2B in illicit Iranian flows, with North Korean hackers laundering funds.

Multiple reports indicate that crypto exchange CoinEx has processed over $3.84 billion in funds linked to Iranian entities since 2019, serving as a major channel for bypassing US sanctions. Blockchain analysis by TRM Labs, cited by the Wall Street Journal, reveals that Iranian wallets—including those tied to the Central Bank and Nobitex, Iran’s largest domestic exchange—routed significant sums through CoinEx. CoinEx became Iran’s primary exit ramp to global markets after Binance tightened its compliance controls. Additionally, CoinEx’s affiliated mining pool, ViaBTC, contributed over $154 million in payouts linked to Nobitex. These findings underscore the difficulties of enforcing sanctions within the crypto sector, as CoinEx only recently restricted Iranian users. Separately, Dubai-based exchange Bybit was linked to $2 billion in illicit Iranian flows, with North Korean hackers reportedly using the platform to launder stolen funds. This further illustrates how sanctioned nations exploit crypto infrastructure.