Key Findings from Investigation

Investigators traced approximately $28 billion in criminal funds moving freely through major cryptocurrency exchanges. Binance, OKX, and Bybit were identified as preferred channels for cybercrime and global scam networks. Binance allegedly continued receiving high-risk inflows even after its $4.3 billion settlement. Political ties and recent U.S. actions toward Binance have raised concerns that regulation could soften instead of tighten.

Methodology and Scope

These findings stem from a collaborative project between the New York Times and the International Consortium of Investigative Journalists (ICIJ). The project analyzed two years of blockchain transfers and internal compliance documents. The reporters uncovered a system where billions of dollars generated through cyberattacks, social-engineering frauds, and transnational scam operations were able to move freely across mainstream trading platforms, which are central to the global crypto economy. Investigators describe a system where criminal liquidity can be absorbed into legitimate markets with alarming efficiency, rather than being an isolated abuse.

Exchanges as Preferential Targets

The core of the report centers on Binance, OKX, and Bybit. These exchanges were not randomly selected but were preferential targets because they allegedly provided the fastest path to conversion into widely traded assets and stablecoins. In some instances, networks linked to North Korean hacker collectives and Southeast Asia–based industrial-scale scam farms, including pig-butchering operations, reportedly funneled enormous volumes through these platforms. These funds were then distributed across brokers and stock exchanges worldwide.

Persistence of Illicit Flows Post-Penalties

A particularly controversial element uncovered by the investigation is the apparent persistence of illicit flows even after public enforcement actions. Despite Binance paying a record $4.3 billion settlement and admitting to money-laundering and sanctions violations in the United States, investigators claim the exchange continued to receive over $400 million from high-risk accounts. A notable share of these funds was linked to Cambodia’s Huione network, which is associated with forced-labor scam compounds.

Geopolitical and Regulatory Implications

The findings carry significant geopolitical implications. The report highlights two recent developments: President Donald Trump’s signing of a $2 billion cooperation agreement with Binance and his pardon of Changpeng Zhao. These events have sparked unease among analysts. Critics fear that the optics of strengthened ties between Washington and the world's largest exchange could be interpreted as a signal that regulatory pressure on the industry's dominant players might soften, even as illicit financial flows remain prevalent.

Anticipated Regulatory Fallout

The tone among policy specialists interviewed in the investigation is almost uniform: the era of lax oversight in the digital asset space is nearing its end. Whether governments choose to lean toward enforcement or partnership, the report's documentation of approximately $28 billion in criminal capital entering the exchange ecosystem over two years is expected to prompt global watchdogs to push for cross-border supervision, stricter onboarding standards, and real-time monitoring of high-risk transfers. The story underscores a broader challenge: a digital-asset framework that still struggles to defend itself against the world's most organized financial-crime networks.