A crypto exchange called Kyrrex was secretly operating within another major exchange, HTX, which processed billions of dollars in fraudulent transactions.
By Wahid Pessarlay
Editor Hamza Tariq
Updated
2 mins read
Investigators found that the exchange Kyrrex operated inside a larger exchange, HTX, and handled wallets linked to hackers, fraudsters, sanctioned actors and criminal networks.
According to a report by the International Consortium of Investigative Journalists, “dozens of investors” have lost roughly $6.5 million through Kyrrex-controlled wallets.
The investigative report found that the Kyrrex exchange was registered in St. Vincent and the Grenadines and used “nested” operations to hide its affiliation with HTX. The setup made it difficult for regulators to oversee the company’s operations.
According to lawyer Marius Hupkes, who represents Dutch victims, some Kyrrex account openings were clearly fraudulent. They reportedly used fake names, addresses, and PO boxes.
Yet, the crypto exchange claimed to enforce standard know-your-customer and anti-money laundering procedures.
Hupkes’ clients are now suing Kyrrex for $11 million.
The deceptive Kyrrex wallets moved around $10 billion in Bitcoin BTC $91 250 24h volatility: 0.0% Market cap: $1.81 T Vol. 24h: $89.57 B between February 2022 and July 2025, according to the ICIJ.
However, Kyrrex co-founder Mykhailo Romanenko told ICIJ that the platform operated as a brokerage and even denied the “nested exchange” label.
Romanenko insisted that Kyrrex was fully compliant with the local regulations and “cooperates with law enforcement and regulators.”
On the other hand, investigators found obvious red flags that should have been blocked, the report added.
According to ICIJ, authorities in multiple countries are now investigating both Kyrrex and HTX for possible money laundering failures and lack of oversight.
Crypto scams have been haunting the industry since its inception and have been constantly undermining blockchain technology.
Crypto investors have lost over $2.1 billion in more than 75 incidents within the first half of 2025 alone.
In August, Binance CEO Richard Teng warned the public of a new type of crypto scam where fraudulent actors would gain access to the users’ data and asset through fake phone calls.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Wahid has been analyzing and reporting on the latest trends in the decentralized ecosystem since 2019. He has over 4,000 articles to his name and his work has been featured on some of the leading outlets including Yahoo Finance, Investing.com, Cointelegraph, and Benzinga. Other than reporting, Wahid likes to connect the dots between DeFi and macro on his newsletter, On-chain Monk.
