Thread by @Raindropactual

"OKEx Says Founder Not Detained for AML Investigation"

"OKEx wishes to build a safe and compliant ecosystem in the blockchain industry"

Let me put 30 minutes into a Tweetstorm with me literally throwing darts at addresses and tell you why that's bullshit

My firm has 886 OKEx deposit addresses which would have been flagged by most (and in many cases all) known compliance tools (Chainalysis KYT, CipherTrace, Elliptic, Crystal -- you name it.)

These are deposit addresses we've gotten -just in the course of investigations for stolen funds-; we haven't even formally analyzed OKEx. It'd be leagues worse if we did. This is, put simply, just OKEx deposit addresses we've stumbled across. No exchange less Huobi is that bad.

Many of these addresses are likely shady OTCs, though they could be criminals directly. Either way, a compliance tool (that costs <$15K/yr in most cases) would've caught these, undeniably.

If an exchange won't name the compliance tool they use, they probably don't have one.

Point being, the LARPing/virtue-signaling regarding compliance from these shady exchanges is going to come to an end. Full-stop. Shit or get off the pot. Words don't mean anything, data does. Blockchains don't lie, people do.

And before we get into the fun stuff (review of just random addresses for OKEx users), I want to frontload this: I've got far more incriminating receipts on OKEx, to include statements saying they will not respond to US LE, effectively saying "criminals can launder through us."

The trove of other horrifying information on OKEx's approach to AML (which is best described as their only efforts being to facilitate money laundering, so perhaps their... ML program) will be shared soon, likely in the coming weeks via select media outlets.

Now let's get to the fun stuff!

First dart I'll throw: 3Aitg7ykUEhkL3kR1VQqaFhe42jjxDc6bD. 83.6564 BTC is received -directly- from Hydra Marketplace, across 78 transactions. Here's just one of them.

ANY compliance tool I know of has Hydra Marketplace attributed and would've notified OKEx of any one of these 78 transactions -just for this one damn user's deposit address-. This is one of 886 deposit addresses. Buckle the fuck up if you want a deep dive.

3Cy5suCNpqMhjBTuwHenfZ2RxBca1Xx56M: this wallet receives 1497 BTC. Guess how much of that is from PlusToken? Oh, only almost 70% of it through a series of clear laundering transactions that would've been caught with any compliance tool.

13va7xTm4HQ3NMQ7GVUPFfrdffUqy39Qsc -- receives 185.814 BTC in total. Nearly HALF of that is from blast from the past AlphaBay. DIRECTLY. Over 760 transactions, DIRECTLY. Here's just one of them.

(OKCoin label is a mismatch in this tool.)

33SCoT7gAZNNK9wxoMDwj8dMqFM8noBsCF -- receives 18.168 BTC. Guess how much of that is dirty money?

Oh, only over 99% of it.

Guess how much of it is direct from a carding darkweb market?

Gee, only nearly 96% of it.

This DWM is attributed in ALL compliance tools I've seen.

Do I need to continue? I threw darts at addresses for mere minutes. This isn't cherry-picking. This is a NORM.

Exchanges that say they take AML seriously but can't recite their compliance tool are bullshitting you, and are facilitating money laundering under a guise of bullshit.

Whether it's solvency, security, or AML: Blockchains don't lie, people do. OKEx doesn't have an AML program to speak of. Any buzzword-laden verbiage from OKEx to the contrary is absolutely bullshit, and what I'll be revealing soon aught to cement that... if this ain't enough.

If Cryptotwitter could stop price-obsessing for just 5 minutes and start caring about serious issues like this, maybe, JUST MAYBE, we can pretend to be shocked when enforcement actions take place.

"But Rich, I only care about orange coin go up for moon lambo!" That's nice. If you want to hold on to your digital assets, evaluating whether or not an exchange has an effective AML program is just as important as whether or not they have the security and solvency boxes checked.

When the day comes 90% of those using these exchanges care more about solvency, security, and AML than car-trading competitions and whatever shitcoin their "crypto influencer" or Twitter cartoon avatar is shilling, we can pretend to be surprised. But this shit is TOO brazen.

Y'all jump at the opportunity to go down Binance's throats (not saying they're perfect), but I can't replicate deposit addresses like this for ANY other exchanges besides Huobi and OKEx. Period. Whether your metric is volume, quantity of transactions, or however you slice it...

... it's obvious upon MERE SECONDS of peeking into ANY major forensics tool that OKEx does not have an AML program. Not just an ineffective one: doesn't have one.

And before it's said "well they've responded to law enforcement before" -- well no shit. They have to. That's not an AML program. Implying that responding to law enforcement is having an effective AML program is a level of asinine that I won't even bother addressing.

Do I know all of what's going on with Star Xu? No. And anyone claiming to know is full of shit and you shouldn't listen to them unless they work for the CCP -- and want to get gulag'd.

What I do know (and now you know) is that OKEx is an AML shitshow.

And what I do know is there is an enforcement arms race (one I've long predicted and is sadly coming true) between USG and CCP especially (with other characters coming into play).

It's a WHEN, not an IF, that OKEx and Huobi have the book thrown at them -- if that's not what's going on already.

Get your shitcoins off these shit exchanges. I know it can't be done for OKEx, but it can be done for Huobi -- DO IT.

I PROMISE you that there isn't a single fucking trade or opportunity on OKEx or Huobi you can't find somewhere else. And even if there was some amazing opportunity, don't act like I should feel sorry for you because your risk appetite for that reward was absurd.

It's inexcusable that this shit isn't discussed. It's inexcusable that most "influencers" wouldn't begin to have a shred of an idea about any of this. Hold those in this industry accountable, as it's not just exchanges: get this information spread. NOW.

Dark markets are red
Fundsflow is blue
OKEx has no AML program
This shouldn't dumbfound you

3AaUDMBJp5fbw14vQPWpD6rV3ECXcYhAH9 -- OKEx dep address w/ 71.4 BTC received, nearly 65% of which is DIRECTLY (80% total) from DWMs.

This would get an exchange in the US torn apart

(Just casual 2 minute break between calls to point out how mind-numbingly brazen this is btw)

This is becoming a fun 'break' activity for me: OKEx dep addr 37L3iswQNhGX4gJThdp83bBVb9KB9LkdFn

316.5 BTC received, 43% of it from DWMs, incl 118.65 directly from Hydra. And one of them is a THIRTY ONE BITCOIN withdrawal, DIRECTLY from Hydra, LOL.

Yeah, real effective AML 👏