The International Consortium of Investigative Journalists (ICIJ), a global network made up of hundreds of journalists who helped highlight major money laundering operations such as Panama papershas turned its attention to cryptocurrency, and found an almost inhospitable trove of evil.
The ICIJS series of crypto investigative reports, called The coin laundryshowed how illicit funds were funneled through major exchanges such as Binance, OKX, Coinbase, Kraken, Bybit and Kucoin.
Crypto funds tracked by the ICIJ are linked to criminal enterprises around the world including The operation of the “Crypto-Cash Storefront” In places like Ukraine and Dubai.
ICIJ said its findings show “how the rise of blockchain technology – coupled with the speed, anonymity and global reach of cryptocurrency transactions – has quietly spawned a shadow financial system that operates faster, darker and further beyond the reach of regulators and law enforcement.”
In practice this means that a drug cartel, say, can easily use a whole new financial system involving dollar stablecoins, for example, to move cash around, whereas in the old days criminals had to put cash in the boot of the car, according to an analyst Icij spoke to.
“For decades, we have shown how hidden currencies move across offshore shores. Now we reveal how the same forces are exploiting crypto markets to move illicit cash in plain sight,” ICIJ executive director Gerard Ryle said in a statement.
“Our investigation raises urgent questions: How serious are major crypto exchanges in enabling criminal activity? And why are regulators struggling to keep up with a financial system that thrives on opacity and speed?” he asked.
The world of cryptocurrency trading has been scrutinized by many large so-called blockchain analytics companies that monitor illicit funds and suspected wallet addresses, many of whom are contracted to work in the compliance departments of large exchanges. The ICIJ investigations appear to have relied Some smaller, independent blockchain sleuths To perform its analysis.
More than 100 journalists from more than 35 countries collaborated with ICIJ on the project. Media partners include the New York Times, Le Monde, the Toronto Star, Malaysiakini, the Indian Express and the Australian Financial Review.
Coindesk reached out to Binance, OKX, Coinbase, Kraken, Bybit and Kucoin for comment.
