Global cryptocurrency exchange CoinEx has reportedly facilitated over $3.84 billion in transactions for entities linked to Iran, including sanctioned organizations, according to an analysis by blockchain intelligence firm TRM Labs. This finding suggests CoinEx may be acting as a significant gateway for crypto flows into and out of the heavily sanctioned nation.
Key Takeaways
- CoinEx processed over $3.84 billion in cryptocurrency transactions connected to over 60 Iranian entities since 2019.
- A substantial portion of these flows, approximately $2.7 billion, was linked to Iranian crypto exchange Nobitex, indicating a potential systematic outward routing of funds from Iran.
- The exchange has also reportedly handled funds associated with terrorist organizations, including the Islamic Revolutionary Guard Corps (IRGC), and sanctioned Russian entities.
- CoinEx has publicly refuted these claims, stating it has no commercial relationships with sanctioned Iranian entities and has never knowingly facilitated illicit activity.
TRM Labs’ report indicates that major Iranian exchanges consistently route between 5% to 15% of their total transaction volume through CoinEx, a pattern that suggests a coordinated arrangement or that CoinEx actively targets the Iranian market. The report further highlights that CoinEx’s affiliated mining pool, ViaBTC, provided emergency liquidity to Nobitex following a significant cyberattack. Additionally, CoinEx processed approximately $67 million in funds from the Central Bank of Iran as part of a multi-chain laundering scheme between June 2025 and June 2026.
The findings come in the wake of the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designating four major Iranian exchanges, including Nobitex, for sanctions evasion and illicit financing. While CoinEx was not directly included in these recent designations, its alleged role as a conduit for sanctioned entities raises significant compliance concerns.
Regulatory Precedent and Legal Stakes
The allegations against CoinEx present a critical juncture for cryptocurrency regulation, particularly concerning the enforcement of international sanctions. If substantiated, CoinEx’s alleged facilitation of billions of dollars in transactions for sanctioned Iranian entities could set a precedent for how global exchanges are held accountable for compliance with stringent financial regulations. The legal stakes for exchanges operating in this environment are immense, encompassing potential fines, loss of operating licenses, and severe reputational damage. Regulatory bodies worldwide are increasingly scrutinizing platforms that may inadvertently or deliberately serve as channels for illicit finance, especially in regions subject to economic sanctions.
The situation also underscores the challenges in establishing clear jurisdiction and enforcement mechanisms in the borderless realm of cryptocurrency. While CoinEx disputes the findings, asserting that on-chain data does not equate to platform knowledge or support of illicit activity, the sheer volume of transactions linked to sanctioned entities demands rigorous investigation. The exchange’s statement that it has initiated a review and exit process for Iran-related risks and implemented geo-fencing suggests a reactive measure, but the core issue of alleged past facilitation remains under scrutiny.
The report’s author, Ari Redbord of TRM Labs, emphasized the need for regulators and enforcement agencies to focus on the “international infrastructure” that enables such ecosystems, rather than solely on domestic exchanges. This suggests a shift in regulatory focus towards identifying and penalizing global gateways that facilitate sanctions evasion, potentially broadening the scope of enforcement actions against cryptocurrency platforms.
CoinEx has responded to the TRM Labs report, asserting that it has never established commercial relationships with Iranian exchanges or government-linked entities. The exchange claims it has not provided funding channels or active assistance to sanctioned parties. CoinEx further stated it was blacklisted by the Iranian government in 2021 and has no operating entity in the country, arguing it cannot realistically serve as an official funding channel for Iran. The exchange rejects any narrative conflating ordinary user activity with state-level sanctions evasion and insists that on-chain data flow does not imply platform knowledge or support for illicit activity. They maintain they do not knowingly serve sanctioned entities and have implemented geo-fencing and access restrictions for Iranian regions following recent OFAC sanctions.
Source: : www.theblock.co