Binance Still Channeling Millions in Illicit Crypto, New Probe Finds

Key Takeaways

• Binance continued receiving hundreds of millions in illicit crypto flows from scam networks, according to a new investigation.
• President Donald Trump’s regulatory pullbacks, combined with his business ties to the crypto industry, have raised questions among investigators about their impact on exchange oversight.
• Changpeng Zhao recently publicly entertained the idea of reclaiming part of Binance’s $4.3 billion U.S. settlement.

A cross-border investigation has concluded that millions of dollars in criminal proceeds continued to flow through Binance, the world’s largest crypto exchange, even after the company pledged to tighten its compliance controls following a U.S. guilty plea.

The findings, reported by the International Consortium of Investigative Journalists (ICIJ) and expanded upon by The New York Times, have renewed scrutiny of how major trading platforms handle illicit deposits, and how Donald Trump’s U.S. regulatory policy may be impacting their behavior.

Illicit Money Still Moving Through Major Exchanges

According to the ICIJ’s year-long examination, wallet addresses linked to scams, cyber-heists, and organized crime funneled substantial sums into Binance accounts across 2024 and 2025.

The ICIJ’s review of blockchain records showed that wallets connected to Huione Group, a Cambodian financial institution designated by U.S. authorities as a “primary money laundering concern,” moved over $408 million into Binance customer accounts over 12 months.

The New York Times , drawing on its own analysis and work with the ICIJ, similarly reported that Huione-linked wallets sent over $400 million into Binance since 2023.

The Times also found that an additional $900 million in crypto arrived this year from a swapping service that North Korean hackers had used after a record-setting theft.

According to the publication, after hackers stole roughly $1.5 billion in cryptocurrency from the Bybit exchange, the group began converting the stolen Ether through a swapping service.

During the same period, five Binance deposit accounts received an abrupt surge of about $900 million in Ether from that service, the Times said, citing the blockchain-tracking firm ChainArgos.

Jonathan Reiter, the CEO of ChainArgos, told the Times that the timing suggested the inflows were linked to the hacked funds and should have triggered alerts.

Both outlets stressed that the data reflects deposits into Binance, not proof of wrongdoing by the exchange.

Heloiza Canassa, a Binance spokeswoman, told the Times in a statement that the platform cannot block incoming blockchain transfers but said it takes “appropriate” steps once suspicious activity is identified.

“The true measures of compliance for a crypto exchange are the steps it takes to identify and react to suspicious deposits,” she said.

“It is in these areas that Binance is an industry leader,” she added.

Canassa did not respond directly to the flow of Ether on the exchange.

Compliance Promises

The continued movement of illicit funds occurred despite Binance’s 2023 plea agreement with U.S. authorities.

Binance agreed to pay $4.3 billion and operate under the supervision of two court-appointed monitors.

OKX, another major exchange cited in the investigations, also received hundreds of millions of dollars from Huione-linked wallets, even after its own settlement with the U.S. government, according to the ICIJ and The Times.

OKX’s Chief Legal Officer, Linda Lacewell, also said the company worked with law enforcement “to help stop fraud and other illicit activity.”

As the fallout from the settlements continues, Binance founder Changpeng Zhao has reignited public debate over his penalty.

On Monday, Zhao responded on X to a question about whether his presidential pardon…