Reported by ICIJ

(Excerpt shared below. To read full report, go to: https://www.icij.org/investigations/coin-laundry/crypto-cash-desk-currency-exchange-money-laundering/)

The ICIJ’s Coin Laundry investigation pulls back the curtain on a growing global network of “crypto-to-cash” desks and couriers—businesses where people can exchange cryptocurrency (often stablecoins like tether) directly for physical cash. Reporters visited more than a dozen of these operations, from gritty back-rooms in Kyiv to high-rise offices in Dubai, and found that many of them operate with scarce oversight, weak customer checks, and a troubling openness to illicit funds. 

These cash-out desks, sometimes tucked into storefronts or discreet offices, often require little or no identification. In one instance, a reporter traded 1,200 USDT (tether) for cash simply by entering their Telegram username on a handwritten form—and walked out with the exact amount in bills.  This kind of anonymity, combined with the ease of on-chain transfers, makes the operations highly attractive to criminals seeking to launder money while minimizing traceability.

The investigation unearthed major global flows of illicit funds through these desks. Blockchain analysts contributing to the ICIJ review tracked billions of dollars in crypto transactions funneling through these cash-out points. For example, some wallet addresses tied to cash desks in Hong Kong reportedly handled at least $2.5 billion in one year.  Meanwhile, well-known exchanges—including Binance, Bybit, OKX, and Kraken—were found to be sending large volumes of customer crypto to wallets linked to these high-risk cash operations. 

One of the most alarming revelations is about brokered “courier services” that operate globally, even in cities like New York, Montreal, London, and Miami. These services, arranged via Telegram, send couriers carrying bundles of cash in exchange for crypto—sometimes offering a premium for clients taking physical cash.  Such behavior raises red flags for money laundering: cash-heavy criminal organizations may be using these couriers to offload dirty money, while keeping transactions off the regulatory radar.

At the heart of the investigation is the challenge of tracing ownership. Even though blockchains are public, crypto-to-cash services frequently use new wallet addresses—generated constantly—to stay ahead of detection.  Law enforcement and analytics tools often hit “dead ends,” unable to connect these addresses to real-world identities. Meanwhile, researchers like “Sanders” are doing the hard work: doing in-person exchanges, gathering receipts, and mapping wallet ownership—but even his efforts feel like fighting an endless game of whack-a-mole.