Undercover Crypto Transactions, Shady Multimillion-Dollar Schemes, and More Coin Laundry Stories
The Global Crypto Shadow Economy: Unmasking the Coin Laundry
The world of cryptocurrency is often hailed as the future of finance, but beneath its innovative surface lies a sprawling shadow economy. A groundbreaking international investigation, known as The Coin Laundry, has united journalists across more than 35 countries to expose how billions in dirty money are funneled through the world’s largest crypto exchanges. This global deep-dive reveals a disturbing pattern: criminals are consistently outmaneuvering regulators, exploiting cutting-edge technology to wash illicit funds.
From covert cash-out services that bypass the traditional banking system to elaborate investment scams, the investigation uncovers the sophisticated methods used to launder money and defraud victims. Here are some of the most compelling stories that reveal the scale and complexity of modern crypto crime.
From Crypto to Cash: Canada’s Under-the-Table Exchanges
In major Canadian cities, a new type of business is emerging: unassuming storefronts that allow individuals to convert cryptocurrency directly into cash. These operations often function in a regulatory gray area, providing services without asking for customer identification or questioning the source of the digital funds—a direct violation of anti-money laundering (AML) laws.
To test this system, investigative journalists went undercover. Posing as a customer, a reporter arranged a transaction with a Ukraine-based service called 001k.exchange. The process was simple and alarmingly anonymous:
- Contact: The journalist organized the deal via a Telegram account.
- Transfer: They sent 2,000 USDT (Tether, a stablecoin pegged to the U.S. dollar) to a crypto address provided by 001k.
- Pickup: The reporter visited a remittance business in Toronto. To verify her identity, she wasn’t asked for a driver’s license or passport. Instead, she simply had to provide the serial number of a Canadian $5 bill.
A video of the exchange shows the teller verifying the serial number and then handing over a thick stack of cash, no questions asked. This highlights how easily criminals can use such services for
A Wall of Silence: Binance and Law Enforcement in Europe
Tracing criminal funds on the blockchain often requires the cooperation of major crypto exchanges. Law enforcement agencies rely on platforms like Binance, the world’s largest exchange, to identify and freeze accounts linked to illegal activities. However, recent reports from Belgium suggest this crucial partnership is breaking down.
According to Belgian media partners, Binance has abruptly stopped cooperating with police and judicial authorities in the country. This is a stark reversal from its previous stance; a 2023 Europol report had noted Binance as being one of the more cooperative exchanges. “Binance has always cooperated well with the Belgian police. But suddenly… it refused to cooperate,” said Kevin Wiliquet, a crypto specialist with the Belgian federal police.
This shift in behavior coincides with Binance moving its Belgian customers to its Polish division after facing increased scrutiny from local financial regulators. The exchange has reportedly spread its data across multiple jurisdictions, including the secrecy haven of Seychelles, making it significantly harder for Belgian authorities to access user information. While Binance maintains it cooperates with law enforcement globally, sources in Belgium and other EU nations report that information requests are now going unanswered, creating a major roadblock in the fight against financial crime.
The High Price of Hype: in Latin America
Beyond money laundering, cryptocurrency is a fertile ground for large-scale investment fraud that preys on individuals hoping for quick returns. Two cases from Latin America illustrate the devastating consequences.
Ecuador and Colombia: The ADN Business School Scam
A scheme involving a former actress, a church, and a fraudulent online business school called ADN Business School left thousands of investors in debt. ADN promised massive profits through forex trading, sports betting, and crypto token purchases. Instead, it was a funnel for a massive fraud.
Investigators traced an astonishing $176 million in 36 different cryptocurrencies to wallets on Binance registered by the scheme’s masterminds. Unfortunately, the criminals moved the funds before prosecutors could freeze the assets. The speed of crypto transactions and the lack of an institutional wallet to seize the funds meant that only $500 was ever recovered for the victims.
Uruguay: The Fugitive Rugby Player
In Uruguay, a former rugby player, Gonzalo Campomar, is accused of orchestrating a crypto investment scheme that promised lucrative returns of 2% per month. After initial legal complaints from investors who lost their money, Campomar fled the country.
While the total amount stolen remains unknown, the case reveals another layer of complexity: many victims are hesitant to come forward. A law firm reported that several victims declined to pursue legal action because their own invested funds came from murky origins, making them unwilling to face official scrutiny.
The Race Against a Shadow Economy
These stories from The Coin Laundry investigation paint a clear picture: the crypto world is a new frontier for financial crime, and regulators are struggling to keep up. The anonymity, speed, and borderless nature of digital assets provide criminals with powerful tools. As law enforcement and financial watchdogs work to close loopholes, criminals are already finding new ones, ensuring the cat-and-mouse game in the digital shadow economy is far from over.
