How CoinEx Became Iran's Crypto Gateway For Illicit Cash Amid US Sanctions

Last Updated:June 25, 2026, 08:59 IST

Blockchain data cited by a report suggests billions of dollars linked to Iranian crypto activity flowed through CoinEx, prompting the exchange to tighten access for Iranian users.

A cryptocurrency exchange that has quietly expanded over the past eight years has emerged as a critical channel linking Iran’s crypto ecosystem to global digital asset markets, according to a Wall Street Journal report.

The report said blockchain investigators recently uncovered a chain of transactions connected to two digital wallets controlled by the Central Bank of Iran.

By tracing the movement of funds, they found the assets were linked to the $1.5 billion stolen by North Korean hackers from crypto exchange Bybit. After reaching Iranian-controlled wallets, the cryptocurrency reportedly moved through a web of transactions, with one of the destinations being CoinEx, an exchange that investigators say has become an important gateway for Iran’s cryptocurrency operations.

According to blockchain intelligence firm TRM Labs, cited by the report, wallets with identifiable links to Iran have transferred more than $3.84 billion through CoinEx since 2019.

The report said wallets hosted by CoinEx received cryptocurrency that ultimately reached Iran’s Central Bank following the Bybit hack.

The exchange also conducted transactions with accounts that US officials have attributed to Iran’s Islamic Revolutionary Guard Corps (IRGC), according to TRM’s analysis.

CoinEx was founded in Hong Kong in 2017 by former Tencent engineer Haipo Yang and is now headquartered in Seychelles.

In text messages to The Wall Street Journal, Yang acknowledged that the platform had been “widely used by Iranians" but maintained that CoinEx “doesn’t have a relationship with the Iranian government."

Yang said the exchange operates a transaction-monitoring system, screens users for high-risk activity, and has recently begun blocking new registrations from Iranian IP addresses.

A CoinEx spokesperson also told the newspaper the company would conduct an internal review of transactions connected to the Bybit hack.

SANCTIONS POSE A CHALLENGE

The report mentioned that CoinEx’s role underscores the challenges faced by the United States in enforcing sanctions against Iran.

While Tehran has publicly embraced cryptocurrency, the digital asset ecosystem offers platforms operating largely outside Washington’s jurisdiction, enabling users to move funds globally.

CoinEx itself agreed to exit the US market after being fined by New York’s attorney general in 2023.

The US is currently negotiating a peace agreement with Iran that could include significant sanctions relief, despite previously threatening additional sanctions against foreign financial institutions assisting Iranian activities.

US authorities have also targeted other cryptocurrency exchanges.

In 2023, Binance was penalised in part for allowing Iranian customers to use its platform. According to blockchain data cited by the Journal, Binance had long been the largest foreign counterparty to Iran’s leading domestic crypto exchange, Nobitex.

However, after Binance strengthened its sanctions compliance beginning in 2022, CoinEx replaced it as Nobitex’s largest foreign counterparty by 2024.

Earlier this month, the Trump administration sanctioned Nobitex, alleging that it supported the Iranian government.

TRM Labs found that more cryptocurrency flowed from Nobitex to CoinEx than returned to the Iranian platform.

From CoinEx, Iranian users were reportedly able to access broader cryptocurrency markets, including Binance.

The Journal said digital assets have become increasingly popular among ordinary Iranians seeking to protect their savings from the weakening rial while also trading cryptocurrencies for profit.

Researchers estimate that around 13 per cent of Iran’s population owns cryptocurrency, representing a market worth between $8 billion and $10 billion in 2025.

Former employees told the newspaper that CoinEx built a presence in Iran by recruiting users through business-development managers.

However, a CoinEx spokesperson denied that the company established an office in Iran or knowingly hired such personnel.

LINKS TO SANCTIONED NETWORKS

According to TRM’s analysis, more than $763 million moved between Nobitex and CoinEx last year alone.

CoinEx disputed TRM’s calculations, calling the aggregation method misleading and arguing that another third-party provider estimated lower transaction volumes.

Even so, its own figures still identified CoinEx as Nobitex’s largest counterparty in 2025.

The Journal also reported that CoinEx wallets processed transactions involving individuals and entities later sanctioned by the United States.

Between 2022 and 2025, CoinEx wallets handled transactions linked to Alireza Derakhshan, an Iranian accused by US authorities of participating in an oil sales network.

The exchange also transacted with wallets associated with Zedcex, an exchange linked to Iranian businessman Babak Zanjani, who has described himself as “a strategist" for the IRGC’s sanctions-evasion operations.

The US Treasury sanctioned Derakhshan’s network last year and imposed sanctions on both Zedcex and Zanjani in January. The Journal noted that the transactions involving CoinEx occurred before those sanctions were announced.

The report said Iran’s cryptocurrency market was disrupted earlier this year after military strikes by the US and Israel prompted Iranian authorities to restrict internet access.

Although Iranian users told The Wall Street Journal they were unable to access CoinEx during the blackout, TRM found that the average size of transactions between CoinEx and Nobitex actually increased during that period.

About the Author

Vani Mehrotra

Vani Mehrotra is the Deputy News Editor at News18.com. She has more than 10 years of experience in national and international news and has previously worked on multiple desks.

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