CoinEx Denies 'Knowledge' of Aiding Sanctioned Iran Crypto Market in $3.8 Billion Disconnect

CoinEx denied knowledge of facilitating cryptocurrency transactions for sanctioned Iranian platforms, following a TRM Labs report that identified over $3.84 billion in crypto flows between the exchange and more than 60 such entities. The report, published on June 18, 2024, detailed how these Iranian platforms, operating under U.S. sanctions, utilized CoinEx to move digital assets. TRM Labs stated that these platforms processed approximately $2.1 billion in inbound and $1.74 billion in outbound transactions through CoinEx between January 2023 and May 2024. The analysis highlighted that these sanctioned entities were able to access global liquidity and evade U.S. sanctions through their use of CoinEx. CoinEx, in its response, stated that it adheres to all relevant regulations and sanctions, and that it has a dedicated compliance team working to prevent illicit activities. The exchange also mentioned that it has previously taken action against users violating its terms of service, including those involved in sanctioned activities. TRM Labs' findings suggest a significant pathway for sanctioned Iranian entities to engage in global cryptocurrency markets, underscoring ongoing challenges in enforcing financial sanctions in the digital asset space.