CoinEx Denies Iran Links After WSJ Highlights $3.84B in Iran-Related Crypto Flows

• CoinEx refuted claims linking the state-backed companies from Iran to shift funds via its cryptocurrency exchange network.
• They promised to step up efforts regarding sanctions and compliance screenings amid growing concerns regarding the issue.

CoinEx rejected the accusations that its platform was involved in facilitating transactions for Iranian state-backed organizations following the recent Wall Street Journal report on the matter. According to the report, about $3.84 billion of cryptocurrency inflows related to Iran were identified by investigators as having gone through the platform since 2019, which puts CoinEx in a spotlight as regulators are putting more pressure on crypto exchanges conducting cross-border transactions.

Moreover, CoinEx rejected all the allegations about the existence of any business relations with Iranian government entities, local exchanges, the Revolutionary Guard, or any sanctioned entities. The company also noted that CoinEx does not have offices and legal entities in Iran. To prove its point of view, CoinEx mentioned that Iranian authorities have recently blocked the platform’s official website in 2021 after adding it to the blacklist.

Exchange Challenges Transaction Analysis

The debate heated up after reports claimed a connection between certain transaction trails on wallets related to the Iranian central bank with the stolen coins from the notorious Bybit hack. CoinEx rejected this analysis and stressed that transaction trails on the blockchain cannot be used to prove involvement in questionable practices.

CoinEx claims that blockchain is open and transparent, but different analysts can come to different conclusions analyzing relations between the wallets and transaction trails. In addition, according to the company, the reported total amount of transactions was wrong because the investigators summed up incoming and outgoing flows into one number.

CoinEx Increases Compliance Efforts

Despite refuting the claims made against it, CoinEx emphasized that it is continuously reviewing the transactions listed in the report. The firm also underscored its efforts in cooperating during the Bybit hack, in which it assisted in blocking and freezing the accounts connected to the illicit activities once it became aware of the situation.

On the other hand, CoinEx has increased its sanctions screening, transaction monitoring, geo-fencing, and anti-money laundering policies on its platform. The cryptocurrency exchange firm also increased its Know Your Customer policy and limited registration from high-risk areas. With the increasing regulatory attention towards Iran-based crypto activities, CoinEx indicated that it will continue to invest in compliance infrastructure and on-chain risk monitoring.

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