ICIJ Exposes ‘Coin Laundry,’ Crypto’s Shadow Financial System

The International Consortium of Investigative Journalists (ICIJ) published a series of reports, dubbed the 'Coin Laundry,' exposing how cryptocurrency has spawned a shadow financial system used for illicit activities globally. The investigation tracked illicit funds funneled through major exchanges like Binance, OKX, and Coinbase, linking them to criminal groups including North Korean hackers, Russian gangs involved in human trafficking, and Mexico’s Sinaloa drug cartel, often utilizing 'crypto-cash storefronts.' ICIJ Executive Director Gerard Ryle stated that this new system allows criminals to move illicit cash in plain sight, raising urgent questions about the complicity of major crypto exchanges and regulators' ability to keep pace. The findings suggest that blockchain technology's speed and anonymity allow this system to operate faster and darker than traditional finance.

(Source：CoinDesk)