WikiBit Exchange Exit Risk Ranking #25: CoinEx — A Bitmain-Linked Tech Veteran. Can It Survive a Sanctions Investigation?

Introduction: A Veteran Exchange with Strong Technical Foundations but Serious Compliance Weaknesses

In the first 24 editions, we investigated a wide range of exchanges, from HashKey to Hotcoin. For the 25th edition, we are taking a closer look at an exchange with a striking mismatch between technical capabilities and compliance risks: CoinEx.

CoinEx's credentials are impressive when it comes to technology: founded in 2017, backed by Bitmain, built by the original ViaBTC mining-pool team, with founder Haipo Yang reportedly writing the entire ViaBTC codebase himself. The exchange claims to serve more than 10 million users across 200+ countries, support more than 1,300 cryptocurrencies, publish monthly Merkle Tree-based Proof of Reserves with reserve ratios consistently above 100%, and fully compensate users after a 2023 hack.

Sounds like the profile of a technically solid, user-focused veteran exchange, right？

But on the other side of the balance sheet is a major compliance red flag.

A major Wall Street Journal investigation in June 2026 reported that TRM Labs had traced more than $3.84 billion in transactions linked to sanctioned Iranian entities processed by CoinEx since 2019. Fund flows between CoinEx and Nobitex, Iran's largest cryptocurrency exchange, reportedly reached $27 billion, while some funds were also found to overlap with assets allegedly stolen from Bybit by North Korean hackers.

CoinEx currently has a 3.2/5 rating on Trustpilot, while recurring negative reviews include complaints about frozen accounts, withdrawal connection errors, and missing deposits. Its founder, Haipo Yang, also faced significant controversy in 2019 after launching VDS (Vollar), a so-called “resonance coin.”

WikiBit currently rates CoinEx 4.98/10, noting that it has no valid cryptocurrency regulatory license, while its Canadian FINTRAC registration (No. 20232100) is listed as abnormal, with the regulator showing the status as revoked.

The key question for this edition is therefore:

Can CoinEx's technical track record withstand the test of a serious sanctions and compliance investigation？

How did a veteran exchange with strong technical foundations and transparent Proof of Reserves (PoR) become a “major channel” for Iranian sanctions evasion？ Lets break it down layer by layer.

1. Regulatory Compliance: Forced Exits from Multiple Markets and Cross-Border Fund Screening Controversies Are the Biggest Compliance Risks

CoinEx is registered through an offshore entity and does not hold top-tier financial licenses from major global regulators. Its earlier Estonia-related registration credentials have subsequently become questionable in terms of validity. It has not obtained an EU MiCA CASP license and operates as a typical offshore cryptocurrency exchange.

United States: In 2023, the New York Attorney General sued CoinEx for operating without a license. The platform reached a settlement, paid compensation, fully exited the U.S. market, and was prohibited from providing services to New York users again.

Canada: Quebec's financial regulator, the Autorité des marchés financiers (AMF), obtained a permanent injunction against CoinEx, requiring the platform to block local access and giving Canadian users a deadline to withdraw their assets and leave the platform. CoinEx's operations in Canada were effectively shut down permanently.

Thailand: Thailand's SEC placed CoinEx on its banned list, determining that the platform was conducting digital-asset business without authorization and prohibiting it from operating for local users.

The major controversy: A report from blockchain analytics firm TRM Labs indicated that approximately $3.84 billion in funds linked to sanctioned Iranian entities had flowed through CoinEx since 2019. This led to allegations that CoinEx had become a channel for circumventing U.S. sanctions. CoinEx responded that it was unaware of the activity and subsequently strengthened its anti-money-laundering controls, sanctions screening, and geographic restrictions.

As of now, CoinEx itself has not been directly designated on the OFAC sanctions list. However, it continues to face extremely high levels of regulatory scrutiny. If further regulatory penalties materialize, they could directly affect the platform's asset security and operational stability.

Risk Rating: High Risk

The platform has actively withdrawn from multiple heavily regulated markets. This was not a case of obtaining compliant licenses and expanding gradually; instead, it exited under regulatory pressure. Its cross-border fund-control weaknesses remain a long-term ticking time bomb.

2. Account Security and Withdrawals: Hackers Stole $70 Million, While Account-Freeze Complaints Remain Relatively Common

Major Security Incident

In September 2023, CoinEx suffered a hack caused by the leakage of private keys from its hot wallets. Hackers stole approximately $70 million worth of assets, forcing the platform to temporarily suspend deposits and withdrawals for all assets.

CoinEx disclosed the incident promptly and pledged to fully compensate all affected users. It ultimately completed compensation for all affected users, while assets stored in cold wallets were not impacted.

Following the incident, the platform launched the CoinEx Shield protection fund, upgraded its hot/cold wallet segregation and multi-signature management mechanisms, and strengthened on-chain wallet monitoring.

This is different from many exchanges that disappear or effectively abandon users after a major hack. CoinEx did not go offline, shift the blame, or walk away from its compensation commitment. It ultimately delivered on its promise, which is a positive factor.

However, the underlying hot-wallet private-key leak exposed weaknesses in its internal security management at the time.

Real User Withdrawal Feedback and On-Chain Tracking

Positive feedback: Most ordinary users are able to withdraw their funds successfully under normal circumstances. CoinEx also regularly publishes the on-chain cold-wallet addresses corresponding to its disclosed reserves, allowing users to independently verify on-chain balances.

Common negative complaints include:

Accounts being frozen after triggering risk-control mechanisms, with users required to submit extensive KYC documentation and proof of source of funds. Some users report lengthy customer-service ticket processing times.

Occasional network congestion and review delays when withdrawing smaller-cap tokens. These incidents do not necessarily indicate that the platform is withholding funds, but communication efficiency can be poor.

On-chain wallet structure: CoinEx uses cold wallets to store the majority of user assets, while hot wallets are primarily used for day-to-day liquidity operations. The platform's disclosed reserve addresses can be independently checked on-chain. However, ordinary users can only verify snapshot data and cannot continuously monitor wallet movements in real time, 24/7.

For normal small withdrawals, the platform appears relatively stable. However, if your source of funds is complex or involves multiple cross-border transfers, you may trigger AML risk controls and have your account frozen. With an offshore exchange, users may also have limited access to third-party regulatory channels when seeking to protect their rights.

The “Underlying Current” in Trustpilot's Negative Reviews

CoinEx's overall 3.2/5 Trustpilot rating is not particularly poor. But a closer look at negative reviews reveals several recurring patterns:

“SCAM — CoinEx seems to be a scam. My limit order wasn't executed. When I sold at market, it showed a $30 profit, but only $2 was actually executed.”

“This is a scam. I managed to recover my investment after my account was locked.”

“Scammers together with SIMPLEX. I made a SEPA transfer to CoinEx through SIMPLEX. It has been 19 days. They said the money was not credited because of an error, and now they say they will return the transfer, but they have never followed through.”

The overall 3.2 rating masks a divided reality: users who encounter no problems tend to consider the platform acceptable, while users who run into serious issues may find themselves facing prolonged account restrictions and communication difficulties.

Risk Rating: Medium-High Risk

3. Proof of Reserves: Monthly Updates, 100%+ Coverage — This Is One Area That Is Difficult to Criticize

The Data: Strong and Consistent

When it comes to reserve transparency, CoinEx is genuinely one of the more transparent veteran exchanges in the industry.

After the collapse of FTX in December 2022, CoinEx was among the earlier exchanges to introduce Proof of Reserves. It has continued updating its PoR every month without interruption.

Latest PoR data as of May 8, 2026:

All major assets have reserve ratios above 100%.

But Strong PoR Cannot Hide Weak Compliance

First, PoR proves asset coverage, not the legality of the source of funds.

CoinEx's PoR figures are indeed impressive. But the $3.84 billion in Iranian-related funds tracked by TRM Labs allegedly moved through these very types of “well-funded” wallets. A reserve ratio above 100% and sanctions compliance are two completely different issues.

An exchange can simultaneously have a 106% reserve ratio and serve as a major channel for sanctions evasion. There is no contradiction between the two.

Second, PoR is a “snapshot,” not an audit.

As discussed in previous editions, CoinEx's PoR follows a model in which the platform publishes the data and users independently verify it. There is no signature from an independent third-party auditing firm such as The Network Firm LLP.

“Verifiable” does not mean “audited.”

Third, the $70 million hack in 2023 demonstrates that strong PoR and wallet security are two separate issues.

Before the hack, CoinEx's reserve ratio was presumably also above 100%.

Risk Rating: Low Risk — For PoR Transparency Only

On the PoR front, CoinEx genuinely performs well: monthly updates, consistency, and transparent data.

This is one of the clearest differences between CoinEx and exchanges such as UZX and Azbit that do not even publish meaningful Proof of Reserves.

But there is one critical point to remember:

Strong PoR does not automatically mean a safe exchange.

4. Asset Strength: Backed by Bitmain, Strong Technical Foundations, but Limited Scale

Data Overview

Founded: December 2017

Lead investor: Bitmain (BITMAIN)

Users: 10 million+ (official figure)

Supported cryptocurrencies: 1,300+

CoinGecko Trust Score: 7/10

CoinPaprika Confidence Score: 60.77%

A Clear Gap Between CoinEx and Tier-1 Exchanges

CoinEx's current 24-hour spot trading volume is around $50 million, while Tier-1 platforms such as Binance and OKX process daily trading volumes ranging from several billion to tens of billions of dollars.

In terms of scale, CoinEx is roughly at the mid-range level among second-tier exchanges.

CoinEx emerged from the ViaBTC ecosystem. ViaBTC is a long-established Bitcoin mining pool that has operated in the mining sector for years, allowing its team to accumulate considerable resources in the early development of crypto infrastructure.

The ecosystem includes a mining pool, the CoinEx Smart Chain public blockchain, and the CET platform token, forming a relatively self-contained ecosystem.

Advantages: Compared with exchanges that were built from scratch without an established ecosystem, CoinEx has ongoing business operations and revenue streams rather than relying solely on trading fees. It has also survived for eight years and weathered multiple crypto bear markets.

Weaknesses: Almost all of its businesses remain closely tied to overall cryptocurrency market conditions. During a prolonged bear market, shrinking trading volumes and a sharp decline in the price of CET could put pressure on ecosystem cash flow. The boundaries between ecosystem assets and exchange assets are also somewhat blurred, theoretically creating a possibility that ecosystem risks could spill over into the exchange itself.

Risk Rating: Medium Risk

5. Internal Operations and Team: Haipo Yang — The Two Sides of a “Tech Geek”

Founder: Haipo Yang

CoinEx founder Haipo Yang is one of the relatively rare crypto founders with a predominantly technical background.

Born in the 1990s and graduated from Northwestern Polytechnical University with a degree in Mathematics and Applied Mathematics

Previously worked at Tencent TEG/Weibo and Futu Securities

Began developing and deploying Bitcoin mining-pool infrastructure in March 2016

Independently wrote the entire codebase for ViaBTC, which ranked among the world's top five mining pools at the time, and launched it just two months later

Founded CoinEx in 2017

Named one of the notable Tencent-affiliated entrepreneurs in 2017

But Yang is also a highly controversial figure.

Controversy 1: The 2019 VDS “Resonance Coin” Incident

Yang was once a strong promoter of the “resonance model” associated with VDS (V-Dimension). The model was later widely criticized as having characteristics of a Ponzi-like structure. After the price of VDS collapsed, many users suffered substantial losses.

Yang later publicly reflected on the incident, but the episode remains a blemish on CoinEx's brand history.

Controversy 2: Transparency Following the 2023 Hack

After CoinEx was hacked in September 2023, the exchange did not publish the same level of detailed attack analysis and fund-recovery reports seen from some other exchanges.

Although it promised to fully compensate affected users, publicly available information remained relatively limited regarding key questions such as where the funds went, exactly how the attack occurred, and how similar incidents would be prevented in the future.

Controversy 3: The “We Were Unaware” Defense Regarding $3.84 Billion in Iranian-Linked Transactions

As a technically oriented founder, Yang should theoretically possess a much deeper understanding of on-chain data than the average crypto exchange CEO.

A person capable of independently writing an entire mining-pool codebase claiming that he had not detected abnormal fund flows involving $3.84 billion for seven years is difficult to reconcile with the expectations one might have of a technically sophisticated exchange operator.

Risk Rating: Medium Risk

There is no question about Yang's technical capabilities, and Bitmain's backing is also substantial.

But strong technical ability does not equal strong compliance intent, nor does it necessarily mean that an effective compliance system is actually operating.

The biggest risk of having a technical genius run an exchange may precisely be this:

He knows where the system can potentially be bypassed.

6. Product Experience and Trading Depth: Plenty of Coins, but Depth Remains Questionable

Product Lineup

CoinEx offers a relatively comprehensive product range, including:

Spot trading with 1,300+ cryptocurrencies

Futures

Margin trading

Earn products

The CET ecosystem

The sheer number of supported cryptocurrencies is one of CoinEx's biggest selling points. With more than 1,300 assets, its token selection is relatively extensive among second-tier exchanges.

But There Are Several Pain Points

First, “withdrawal connection errors” appear repeatedly in user complaints.

As mentioned earlier, multiple users have reported similar technical issues that prevented them from withdrawing their funds.

Second, customer support is frequently described as “slow or nonexistent.”

Users on Sikayetvar have repeatedly complained about being unable to reach a customer-service representative or having their messages marked as read without receiving a response.

Third, was the post-2023 security rebuild truly comprehensive？

CoinEx stated that it rebuilt its wallet infrastructure following the hack. However, in the 2026 investigation into Iranian-linked fund flows, TRM Labs tracked transactions involving wallet addresses.

A key unanswered question is whether any of these addresses belong to the new wallets established after the 2023 security rebuild.

CoinEx has not directly addressed this issue.

Risk Rating: Medium Risk

7. Real Community Feedback: The “Survivorship Bias” Behind a 3.2 Rating

Rating Distribution

Trustpilot: 3.2/5

TradersUnion: Overall rating of 7.52/10, describing CoinEx as a “reliable cryptocurrency exchange”

JustUseApp: Security score of 68.3/100, describing it as “seemingly real and trustworthy”

But Negative Feedback Is Concentrated Around the Critical Issue of Withdrawals

CoinEx's community reputation reveals a very clear pattern:

Users who have never experienced withdrawal problems → tend to describe the platform as having “a wide range of cryptocurrencies, an easy-to-use interface, fast deposits, and reasonable fees.”

Users who have experienced withdrawal problems → report “connection errors,” “missing deposits,” “account suspension,” and “unresponsive customer service.”

This is not simply a case of having a “bad reputation.”

It is a case of a deeply polarized reputation.

The 3.2/5 rating reflects the reality that most users do not encounter serious problems. But once you become one of the users who does, CoinEx's customer-service system appears to have limited ability to resolve the issue.

8. Overall Exit Risk Assessment

Overall Rating: Medium-High Exit Risk

CoinEx is an extremely unusual case in this series — a contradiction between a “top technical student” and a “failing compliance student.”

Its risk profile is fundamentally different from the “shady exchanges” covered in previous editions.

It is not a shell company that “doesn't exist” — Haipo Yang has a public professional background, Bitmain has a documented investment relationship, and ViaBTC was once among the world's top five mining pools.

It is not an assetless shell — it claims 10 million+ users, supports 1,300+ cryptocurrencies, publishes monthly PoR reports, and maintains reserve ratios above 100%.

It is not a cowardly exchange that disappears after being hacked — after the $70 million hack in 2023, it chose to compensate users and rebuild its security infrastructure.

But here's the problem:

1. The $3.84 billion in Iran-linked transactions is not a “minor issue.”

TRM Labs tracked seven years of fund flows involving more than 60 sanctioned Iranian platforms, totaling approximately $3.84 billion.

In the world of sanctions compliance, “I didn't know” is not an effective defense.

2. “Strong technical capabilities” and “an effective compliance system” are two different things.

Haipo Yang may have been capable of independently writing an entire mining-pool codebase, but the $70 million hack represents a stark contrast between technical talent and operational security.

3. “Withdrawal connection errors” appear to be a recurring pattern.

Reports involving 7,800 USDT being frozen, deposits not being credited, and a 778 USDT withdrawal being rejected are not merely isolated technical glitches. They point to potentially systemic problems in the user withdrawal and risk-control process.

4. Strong PoR cannot compensate for weak compliance.

CoinEx is not a blatantly fake scam like UZX or Azbit.

It is better described as a technically solid veteran exchange whose compliance commitment and capabilities appear seriously inadequate.

It has been operating in crypto for nine years. Its technical foundations are difficult to dismiss, but when it comes to regulatory red lines, it may have been repeatedly stepping over them.

9. Recommendations for New and Existing Users

For New Users

1. Enter with caution.

CoinEx is not an obviously fake or fly-by-night exchange. It has Bitmain backing, publishes PoR, and has nine years of operating history.

But when you put together the $3.84 billion in Iran-linked transactions, recurring “connection error” withdrawal complaints, and the “we were unaware” style of compliance defense, you have three major risk factors.

Are you really willing to bet on that combination？

2. If you insist on trying it, test the entire process with a small amount first:

Deposit → Trade → Withdraw.

Pay particular attention to withdrawals. Many of the users reporting “connection errors” on Sikayetvar encountered problems specifically when attempting to withdraw.

3. Beware of the “1,300+ cryptocurrencies” trap.

A large number of listed assets may sound attractive, but many smaller-cap tokens have extremely poor liquidity, which can create additional problems when withdrawing.

4. Plan large withdrawals in advance.

Be mentally prepared for potential “connection errors” or prolonged “under review” status. Don't wait until you urgently need the money before initiating a withdrawal.

For Existing Users

1. Evaluate your exposure.

If more than 10% of your total assets are held on CoinEx, consider gradually reducing your position.

This is not because CoinEx is necessarily going to fail tomorrow. Rather, the investigation surrounding $3.84 billion in Iran-linked transactions could trigger intensified regulatory scrutiny, potentially affecting withdrawal channels.

2. Test a withdrawal now.

Try withdrawing a small amount today.

If it works, that at least confirms that withdrawals are functioning for your account at the moment. If it doesn't, discovering the problem early is much better than discovering it when you urgently need your funds.

3. If you are located in a restricted jurisdiction, pay close attention.

CoinEx's restricted jurisdictions reportedly include the United States, Canada, mainland China, Hong Kong, the European Union, and the United Kingdom, among others.

If you are located in one of these regions, your account could potentially become restricted.

4. Monitor developments surrounding the sanctions investigation.

TRM Labs' $3.84 billion figure is already public. Whether the U.S. Treasury's OFAC takes further action, and whether CoinEx itself could face sanctions, will be important signals to watch.

5. Don't treat CoinEx as your primary custody platform.

CoinEx has Bitmain backing, publishes PoR, and has nine years of operating history.

But none of these factors can guarantee that it will emerge unscathed from a sanctions investigation.

Final Recommendation

Who Is CoinEx Suitable For？

Technically oriented crypto users who trust Haipo Yang's technical capabilities, are comfortable with regulatory uncertainty, and primarily trade smaller-cap cryptocurrencies.

Who Is CoinEx Not Suitable For？

Large-capital users who require strong liquidity and reliable withdrawals, as well as anyone who places a high priority on regulatory compliance and transparency.

CoinEx occupies a very delicate position.

It is far stronger than “shady exchanges” such as UZX and Azbit — it has Bitmain backing, PoR, nine years of history, and it compensated users after the 2023 hack.

But it is also far weaker than compliance-focused exchanges such as HashKey and Bitvavo — offshore registration, $3.84 billion in Iran-linked transactions, and recurring withdrawal “connection errors” are serious concerns.

CoinEx is like a highly skilled veteran engineer who writes beautiful code but never obtained the required professional certification — and may even have been helping people who shouldn't have had access to the system fix their computers.

The technical skills are not the problem. The real question is how many regulatory red lines have already been crossed.

Next Episode

WikiBit Exchange Exit Risk Ranking #26 — Biconomy Exchange. Stay tuned!

Risk Disclaimer: This article represents an individual analytical opinion and does not constitute investment advice. Cryptocurrency investment involves significant risks. Please exercise caution and conduct your own due diligence.

Information in this article was updated on September 15, 2026. For the latest developments, please cross-check the information with multiple authoritative sources.