In a recent revelation, Binance has issued a strong rebuttal to allegations that it has inadequately addressed financial crime prevention. The accusations stem from an investigation by the International Consortium of Investigative Journalists (ICIJ), which claims that Binance and OKX facilitated significant deposits from Huione, a Cambodian cryptocurrency exchange linked to extensive money laundering activities.
The ICIJ report highlights that Huione has been identified as a critical player in laundering money for various illicit actors, including North Korean cybercriminals. Following a designation by the US Treasury Department that labeled Huione as a money-laundering operation, concerns have arisen regarding the flow of funds into major cryptocurrency exchanges.
Notably, between July 2024 and July 2025, Binance reportedly processed over $400 million in deposits from Huione, while OKX accounted for an additional $220 million during the same period. In response, a Binance representative emphasized the exchange”s commitment to maintaining high security standards and collaborating with regulatory authorities to monitor suspicious activities. They firmly stated, “It is categorically false that Binance “turns a blind eye” to criminal activity.”
Furthermore, the spokesperson pointed out that analytics firms Chainalysis and TRM Labs reported a significant reduction in Binance”s exposure to illicit funds, estimating a drop of up to 98% since 2023. This follows a previous legal settlement where Binance acknowledged failures in preventing money laundering, resulting in a $4.3 billion fine imposed by the Department of Justice.
OKX also defended its operations, asserting that the reported flows from Huione represent only a minuscule portion of its overall activity. The exchange maintains robust anti-money laundering (AML) and know-your-customer (KYC) procedures, which it continues to enhance in line with evolving regulatory demands. An OKX representative noted that after the Treasury”s blacklist of Huione was implemented in October, the exchange ceased all interactions with the platform.
While the sums involved are significant, they are dwarfed by the estimated $2 trillion laundered annually through traditional financial systems, according to the United Nations. In contrast, the total for illicit cryptocurrency transactions over the past five years stands at approximately $189 billion, as reported by Chainalysis. This discrepancy raises critical questions about the ongoing challenges in combating financial crime within the rapidly evolving cryptocurrency landscape.
Ari Redbord, global head of policy and government affairs at TRM Labs, emphasized the complexity of monitoring illicit financial flows, stating, “Not every address linked to a bad actor is used exclusively for illicit activity.” This highlights the necessity of nuanced understanding in blockchain intelligence to accurately interpret the activities within this decentralized ecosystem.
