What Happened:
In November 2023,the world’s largest crypto exchange, Binance, and its founder Changpeng “CZ” Zhao pleaded guilty to massive anti-money laundering (AML) failures, agreeing to a historic $4.3 billion settlement and court-appointed monitors. Despite this, a major new investigation reveals the exchange continued to profit from illicit funds tied to global crime syndicates while under supervision.
Why It Matters:
For traders,this isn’t just old news. It strikes at the heart of crypto’s credibility and the safety of the platforms we use. The International Consortium of Investigative Journalists (ICIJ) found that between the guilty plea and a subsequent pardon for CZ, at least $408 million** linked to Cambodian scam and trafficking networks flowed into Binance. Another major exchange, OKX, which also settled with U.S. authorities, processed over **$161 million from the same criminal group after it was officially labeled a money laundering concern.
Impact on the Market:
This story is a regulatory earthquake,not a price chart event—yet. It fuels the fire for politicians and regulators pushing for tighter controls, which can create market uncertainty and volatility. Major coins like $BTC and $ETH can get caught in the crossfire when trust in the industry’s infrastructure erodes. The investigation also highlights a brutal truth for exchanges: cutting off illicit funds means cutting off a revenue stream, creating a perverse incentive to look the other way. For everyday traders, it’s a stark reminder that "not your keys, not your coins" also applies to choosing which platforms deserve your trust—and your assets.
