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CoinEx Denies Role as a Gateway to Sanctioned Iranian Crypto Entities

TRM Labs says CoinEx processed billions in transactions with Nobitex and other Iranian platforms; the exchange denies the allegations and points to compliance.

By Mike Hesp
• 2 min read
CoinEx Denies Role as a Gateway to Sanctioned Iranian Crypto Entities

Key Takeaways

  • TRM Labs says CoinEx facilitated more than $3.84 billion in transactions with sanctioned Iranian crypto entities over seven years.
  • According to the report, CoinEx had its biggest trading relationship with Nobitex, with about $2.7 billion in transactions, and also direct deals with more than 60 Iranian platforms.
  • CoinEx denies the allegations and points to earlier regulatory steps, including a settlement in New York and approvals in Estonia and Poland.

Blockchain intelligence firm TRM Labs recently published a report saying that CoinEx, an international crypto exchange, facilitated more than $3.84 billion (€3.4 billion) in transaction flows with sanctioned Iranian crypto entities over the past seven years. According to TRM Labs, CoinEx acted as a major gateway to Iran's crypto market.

CoinEx and the Iranian Crypto Market

TRM Labs reports that CoinEx had its largest trading relationship with Nobitex, the biggest crypto exchange in Iran, with about $2.7 billion (€2.4 billion) in transactions between the two sides. In addition, CoinEx reportedly had direct transactions with more than 60 Iranian crypto platforms. According to TRM Labs, this pattern points to a coordinated relationship rather than organic market activity. TRM Labs also identified CoinEx transactions with entities linked to terrorist organizations, including $6 million (€5.3 million) in transactions with wallets tied to the Islamic Revolutionary Guard Corps and $374,000 (€329,800) with Palestinian Islamic Jihad.

CoinEx's Response and Background

CoinEx has denied TRM Labs' allegations and says the findings are inaccurate. The platform, founded in 2017 by mining pool ViaBTC, offers a range of trading services, including spot and margin trading. CoinEx has also faced regulatory challenges in the past, including a June 2023 settlement with the New York Attorney General, where it paid $1.768 million (€1.6 million) for operating as an unregistered broker-dealer. CoinEx also pulled out of the Chinese market after the ban on crypto activity in 2021. More recently, CoinEx introduced CoinEx Vault, a self-custodial cold wallet, and it has regulatory approvals in Estonia and Poland.

Why This Matters for European Crypto Investors

For European crypto investors, it's important to understand that exchanges like CoinEx, despite their global reach and regulatory steps, can still be involved in complex and sensitive geopolitical situations. Involvement in transactions with sanctioned entities can point to risks inside the global crypto ecosystem. This highlights the need for caution and the importance of transparency and compliance within crypto exchanges that operate in international markets.

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