Secret Exchange Inside HTX Linked to $10B Scam Network

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 Denial

The deceptive Kyrrex wallets moved around $10 billion in Bitcoin BTC $92 005 24h volatility: 0.8% Market cap: $1.84 T Vol. 24h: $81.54 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.

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