CoinEx is pushing back against allegations that it knowingly helped move billions of dollars linked to sanctioned Iranian entities, saying blockchain transactions alone should not be taken as proof that an exchange was involved in illicit activity.
The Seychelles-based crypto exchange responded on Thursday after The Wall Street Journal, citing research from blockchain analytics firm TRM Labs, reported that CoinEx had extensive on-chain ties to Iran’s crypto ecosystem.
At the center of the report is Nobitex, Iran’s largest cryptocurrency exchange, which was sanctioned by the U.S. earlier this month over allegations that it facilitated terrorist financing, sanctions evasion, and ransomware payments.
What is the controversy about?
According to TRM Labs, CoinEx maintained blockchain connections with more than 60 Iranian crypto platforms, with Nobitex emerging as its largest external counterparty. The firm argued that the exchange played a key role in providing liquidity to Iran’s digital asset market.
CoinEx, however, rejects that conclusion.
“We firmly reject any narrative that conflates ordinary user activity with state-level sanctions evasion, and any inference that equates on-chain fund flows with platform knowledge of, support for, or participation in illicit activity,” the company said in a post on X.
The exchange said it operates as a global platform serving users around the world and has no official relationship with the Iranian government or any sanctioned organizations.
TRM’s report goes beyond Nobitex. The analytics firm said more than $3.84 billion worth of cryptocurrency has flowed over the past seven years between CoinEx and ViaBTC, a mining pool owned by CoinEx’s parent company. Based on those flows, TRM described CoinEx as “the single biggest lifeline for Iran’s cryptocurrency ecosystem.”
Researchers also pointed to CoinEx’s transaction exposure to more than 60 Iranian entities, arguing that the scale of the connections appeared too extensive to be explained by normal market activity alone.
TRM alleges CoinEx received $67M tied to Iran central bank
In a separate finding, TRM alleged that CoinEx was involved in a year-long money laundering network that ended earlier this month. According to the report, the exchange received around $67 million that ultimately traced back to Iran’s central bank after the funds were routed through multiple blockchain networks.
CoinEx disputes the implication that receiving those funds means it knowingly facilitated illicit transactions.
The company argues that blockchain data shows where funds move, but not whether an exchange had knowledge of every customer or every transaction passing through its platform.
That distinction has become an increasingly important issue across the crypto industry.
Blockchain analytics firms have become a key tool for regulators and law enforcement agencies investigating sanctions violations and financial crime. At the same time, exchanges argue that on-chain exposure alone should not automatically be interpreted as evidence of wrongdoing, particularly for global platforms processing millions of transactions.
The debate also comes as regulators continue tightening oversight of crypto exchanges, placing greater emphasis on compliance, customer due diligence, and transaction monitoring.
While CoinEx insists it has no ties to sanctioned entities, the findings published by TRM Labs are likely to keep the exchange under scrutiny and reignite broader discussions about how responsibility should be assigned when illicit funds move through public blockchain networks.
For now, the exchange maintains that blockchain connectivity does not equal complicity, even as researchers argue the scale of the activity deserves closer examination.
