USDT and Crypto Exchanges Face Scrutiny Amid Money Laundering Investigations

A comprehensive investigation by the International Consortium of Investigative Journalists (ICIJ) has uncovered significant vulnerabilities in major cryptocurrency exchanges, including Binance and OKX, which have been systematically exploited by criminal organizations for money laundering purposes. The report, titled "The Coin Laundry," reveals disturbing patterns of illicit financial activities involving digital assets like USDT, with connections to international drug trafficking networks, sophisticated scam operations based in Southeast Asia, and state-sponsored hacking groups from North Korea. The investigation highlights how criminal entities have leveraged the pseudonymous nature of cryptocurrency transactions to disguise and move illicit funds across global financial systems. Particularly concerning is the involvement of the Huione Group, a Cambodian-based entity, in facilitating these illegal financial flows. This revelation comes at a critical juncture for the cryptocurrency industry, as regulatory bodies worldwide are increasing their scrutiny of digital asset platforms. The findings underscore the ongoing challenges facing stablecoins like USDT and major exchanges in maintaining compliance while preventing their platforms from being abused for criminal purposes. As the industry continues to mature, these developments emphasize the urgent need for enhanced security measures, improved regulatory frameworks, and greater transparency in cryptocurrency transactions to protect the integrity of digital finance ecosystems.

Crypto Exchanges Binance, OKX Used by Criminals to Disguise Illicit Funds, ICIJ Investigation Finds

A recent investigation by the International Consortium of Investigative Journalists (ICIJ) reveals that major cryptocurrency exchanges, including Binance and OKX, have been exploited by criminal networks to launder money. The report, titled "The Coin Laundry," uncovers transactions linked to drug trafficking, Southeast Asian scam centers, and North Korean hackers.

The Huione Group, a Cambodian financial entity flagged by US authorities, allegedly transferred $1 million daily in Tether (USDT) to Binance accounts. Over $408 million flowed from Huione to Binance between July 2024 and July 2025, despite the exchange being under court-appointed monitors as part of its 2023 plea deal with US regulators.

OKX, another leading exchange, received at least $226 million in suspicious transactions after pleading guilty to operating an unlicensed money transmitter in February 2025. The findings highlight ongoing challenges in crypto compliance and regulatory oversight.

Binance Pay Sees Explosive Growth as Stablecoins Dominate Crypto Payments

Binance Pay, the payments arm of the world's largest cryptocurrency exchange, has processed over $250 billion in transactions since its 2021 launch. Merchant adoption has skyrocketed 1,700-fold to 20 million globally, with Latin America, Africa, and Asia emerging as key growth markets.

Stablecoins now account for 98% of business-to-consumer settlements, with USDT, USDC, and FDUSD leading as preferred assets. The dollar-pegged tokens are particularly favored in regions with volatile local currencies or inefficient banking systems.

The platform's user base has expanded by 45 million in four years, demonstrating accelerating mainstream adoption of crypto payments. Recent data from Artemis shows monthly stablecoin payment volumes exceeding $10 billion industry-wide.

Revolut and Polygon Partner to Enable Crypto Remittances Across Europe

Revolut has integrated Polygon's network to facilitate crypto payments and remittances for its 65 million users, processing over $690 million in transactions since December 2024. The partnership enables instant, low-cost transfers of USDC, USDT, and POL across the UK and European Economic Area.

Polygon's role as a stablecoin payments backbone is reinforced, with $3.6 billion in stablecoin supply and 153 million transactions processed monthly. Revolut expands its crypto offerings with POL trading and staking yields up to 4% APY, while its Revolut Ramp feature now supports direct fiat-to-Web3 wallet transfers via Polygon.