A recent investigation by the New York Times and the International Consortium of Investigative Journalists (ICIJ) has revealed that billions of dollars generated through criminal activity have been flowing freely through major cryptocurrency exchanges. The research, based on two years of blockchain data and internal compliance documents, indicates a concerning system where criminal funds are effectively absorbed into legitimate markets with alarming ease. Key findings include: 💰 Investigations traced approximately $28 billion in illicit funds through top crypto platforms, including Binance, OKX, and Bybit. These exchanges were identified as preferred channels for cybercrime and global scam networks due to their ability to quickly convert criminal money into readily traded assets (e.g., stablecoins). 🕵️♀️ Criminal groups allegedly used these exchanges to funnel illicit funds generated through various tactics like social engineering scams and North Korean hacker collectives’ operations, before distributing them across brokers and stock exchanges worldwide. Even after a record $4.3 billion settlement and admitted violations in the United States, Binance reportedly continued receiving high-risk inflows exceeding $400 million, with connections to forced labor scam networks and Cambodia’s Huione network being particularly noteworthy. The investigation also highlighted potential political interference that could undermine regulatory efforts. Two recent events involving President Trump and Binance highlight this concern: a $2 billion cooperation agreement with the exchange and his pardon of Changpeng Zhao, who leads Binance. This has sparked concerns about relaxed regulation as illicit flows persist. 🌎 Regulatory experts interviewed for the report believe the era of lax oversight is coming to an end. They call for stricter onboarding standards, real-time monitoring of high-risk transfers, and cross-border supervision across the industry to effectively combat illicit activities. 🔍 This investigation reveals a broader issue with crypto’s current infrastructure struggling to protect against sophisticated financial crime networks. Disclaimer**: Information provided is for educational purposes only and should not be considered as financial advice. Consult a licensed financial advisor before making any investment decisions.