Crypto exchange CoinEx has categorically denied helping Iranian state-linked entities move funds through its platform after blockchain intelligence firm TRM Labs reported $4 billion in Iran-linked transactions over seven years. The exchange stated it 'never established any commercial relationship' with Iranian government-related entities, Iranian domestic exchanges, the Revolutionary Guard, or sanctioned parties. CoinEx emphasized that it does not have an office or operating entity in Iran, and noted that its official domain has been blocked in Iran since 2021 after being blacklisted by the Iranian government. The exchange's response comes as U.S. sanctions pressure rises around Iranian crypto platforms and fund routes, with the U.S. Treasury sanctioning multiple Iranian exchanges including Nobitex, Wallex, Bitpin, and Ramzinex as part of its campaign against the country's government.
According to TRM Labs analysis, CoinEx became the single biggest trading partner of Iran's largest crypto exchange Nobitex, handling around $2.7 billion in transfers over the seven-year period. The blockchain intelligence firm traced more than $4 billion in flows between CoinEx and sanctioned Iranian entities, with CoinEx having direct transaction exposure with more than 60 Iranian crypto platforms. TRM Labs identified CoinEx exposure to several terrorist-linked entities, including $6 million in transactions involving wallets associated with the Islamic Revolutionary Guard Corps and $374,000 of exposure associated with Palestinian Islamic Jihad. The firm's analysis suggested these patterns indicated a coordinated relationship rather than organic market activity. TRM Labs noted that CoinEx was Nobitex's largest external counterpart by volume by 2024, nearly nine times larger than the next-biggest exchange, a concentration that is statistically improbable for independent market behavior. TRM Labs global head of policy Ari Redbord stated that 'CoinEx isn't just another exchange with incidental Iran exposure — it has functioned as the backbone of Iran's cryptocurrency ecosystem for seven years, processing nearly USD 4 billion across more than 60 Iranian platforms.'
Following the sanctions report, CoinEx has implemented comprehensive compliance measures to address Iran-related risks. The exchange started a full review and exit process for Iran-related risk exposure after sanctions against Iranian domestic exchanges. CoinEx said it strengthened checks for Iranian users, blocked registrations from Iranian regions, and started compliance off-boarding for identified accounts. The exchange expanded geo-fencing, access restrictions, KYT monitoring, sanctions screening, and transaction freezes for high-risk activity. CoinEx said it would restrict or freeze accounts and assets tied to any sanctioned entity or person, and will continue investing in KYC, AML, sanctions screening, and on-chain risk monitoring. The exchange added that it began a review and exit process from all Iran-related exposure following the sanctioning of Iranian exchanges by the U.S. Treasury.
According to TRM Labs analysis, CoinEx received $67 million directly from the Central Bank of Iran, further underscoring its embeddedness with the Iranian government. The security firm uncovered over $154 million in mining rewards from Nobitex-linked addresses that received payouts from ViaBTC, a Hong Kong-based mining infrastructure firm. TRM Labs noted that given industrial-scale cryptocurrency mining in Iran is subject to strict government oversight, these activities could indicate access to state-authorized mining infrastructure or partnerships. The firm established that CoinEx has direct on-chain exposure to the Iran Revolutionary Guard Corps (IRGC) and its proxies in Palestine and Lebanon. TRM Labs global head of policy Ari Redbord emphasized that 'This indicates a willingness to engage with Iranian actors such as the IRGC and enable the largest state sponsor of terrorism in the world to evade sanctions and destabilize the region.'
In its detailed response to the Wall Street Journal report, CoinEx addressed specific transactions referenced in the publication. The exchange clarified that transactions involving Alireza Derakhshan and entities associated with Zedcex and Babak Zanjani occurred before those parties became subject to U.S. Treasury sanctions. CoinEx stated it does not knowingly provide products or services to sanctioned persons or entities and continuously updates its sanctions screening procedures as sanctions lists and regulatory requirements evolve. Regarding the Bybit security incident, CoinEx said it assisted with account blocking and asset freezing shortly after becoming aware of the attack and has initiated an internal review of transactions referenced in the Wall Street Journal report. The exchange also noted that it was itself the victim of a cyberattack in 2023 that multiple public investigations attributed to a North Korea-linked threat actor, resulting in losses of approximately US$80 million.
