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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid heightened regulatory scrutiny on crypto exchanges, blockchain analytics firm TRM Labs alleged that CoinEx facilitated $3.84 billion in flows with sanctioned Iranian entities. TRM Labs said the flows potentially violate U.S. sanctions, according to a report by CoinDesk. CoinEx strongly denied the allegations, calling them inaccurate and misleading.
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Sign InThe allegations come as pressure mounts on crypto trading platforms to comply with international sanctions laws. The U.S. Treasury's Office of Foreign Assets Control (OFAC) has previously sanctioned similar exchanges for facilitating illicit transactions, raising the prospect of new regulatory actions. Scrutiny of crypto flows to and from Iran has also intensified in recent years.
Investors are watching the case closely, as it could lead to increased regulatory scrutiny of CoinEx and other platforms, potentially affecting market confidence in the crypto sector. No direct price data for CoinEx is available, but the broader market often reacts to such negative news. Attention is on any responses from U.S. regulators or further disclosures from CoinEx.