Detecting unusual cryptocurrency flows through exchanges

A comprehensive investigation released by blockchain analytics firm TRM Labs has uncovered a large-scale cryptocurrency transfer network operating through registered exchanges in the United Kingdom since 2023. According to the analysis, approximately $1 billion in cryptocurrency has been transferred via two trading platforms, with transactions believed to be aimed at complex international political contexts. The report indicates that centralized financial systems in London are indirectly involved with this infrastructure, raising questions about oversight and compliance with international regulations.

Cryptocurrency Transfer Infrastructure via International Registered Platforms

According to TRM Labs’ analysis, two exchanges operate under different brands but share common infrastructure. The investigation results show that 56% of the total transaction volume from 2023 to 2025 originates from wallets linked to a specific entity. Most transactions utilize Tether’s USDT stablecoin operating on the Tron network.

The volume of cryptocurrency transfers from these wallets shows significant growth over the years:

• 2023: $24 million
• 2024: $619 million
• 2025: $410 million (as of the report date)

Analysts suggest that this data indicates cryptocurrency is positioned not only as an alternative payment method but also as an informal financial infrastructure to bypass international trade restrictions.

Tracking Methods and Discovery of Financial Flows

The investigative team employed sophisticated tracing techniques to explore wallet structures. By depositing and withdrawing small amounts, they mapped internal wallet networks and tracked fund flows in detail.

Through this method, analysts identified 187 transactions linked to various wallet addresses. These flows point to systematic and organized cryptocurrency transfer activities.

Links to Past Financial Activities

Notably, these networks are believed to be connected to individuals previously involved in sanctions evasion activities. Among the tracked transactions are large payments flowing to foreign partners, suggesting the use of cryptocurrency for financial activities that cannot be conducted through traditional banking systems.

Compliance and Oversight Issues

Both exchanges claim to comply with anti-money laundering regulations on their websites. However, compliance standards between the platforms are inconsistent—one platform lists certain countries as prohibited in its policies, while the other does not impose similar restrictions.

This case highlights the need for stricter regulations and oversight of cryptocurrency exchanges, especially those with international registration and handling large transaction volumes. It also demonstrates how gaps in compliance can be exploited to transfer cryptocurrency beyond trade restrictions.

The report, published by The Washington Post based on TRM Labs’ analysis, a company specializing in blockchain monitoring and money laundering detection, emphasizes the importance of blockchain analytics technology in uncovering unusual financial flows.