Danger · High risk
Fraudulent exchange in an AML report
Exchanges that ran off with user funds or were shut down by authorities.
What it means
Exchanges involved in exit scams or illegal behaviour, or whose assets were seized by authorities. Their former wallets keep the label.
Why it is a risk for you as the recipient
Money that passed through such an exchange may be linked to victims’ deposits or to laundering. Exchanges that receive it often apply enhanced checks.
- In March 2025 US, German and Finnish authorities seized the domains of the exchange Garantex and froze over USD 26 million; the US Justice Department said it had processed at least USD 96 billion since 2019.[1]
Example situation
Illustrative scenario, not a real case. An address paying you received most of its funds from an exchange that authorities shut down for laundering. The exchange is gone, but its history remains on-chain.
What to do if it shows up in a report
- Ask for funds from a different source.
- If you used that exchange yourself, keep your account records — they explain why your coins carry the label.
A high risk score is a reason to look closer, not proof of a crime. A low score does not guarantee that an exchange or issuer will not freeze funds.
FAQ
I used that exchange legitimately. Will I have problems?
You may get questions. Account statements and withdrawal records from the time help you explain the history.
Sources
- U.S. Department of Justice, Office of Public Affairs — Garantex Cryptocurrency Exchange Disrupted in International Operation (7 Mar 2025). Checked 4 Nov 2026.