WhiteBIT Accused of Laundering $2.7 Billion: Kyrgyzstan’s Four Dragons Speaks Out

A high-profile scandal involving the alleged theft of nearly USD 1 million from the Kyrgyz-based crypto exchange Four Dragons has escalated into international headlines.

A high-profile scandal involving the alleged theft of nearly USD 1 million from the Kyrgyz-based crypto exchange Four Dragons has escalated into international headlines. According to Kaktus.media, Four Dragons claims the stolen USDT was routed through several addresses and ultimately laundered via the major cryptocurrency platform WhiteBIT. The scale of the purported scheme has been pegged at USD 2.7 billion in “dirty” funds, and investigations are reportedly underway in Austria, the UAE, Uzbekistan, Kyrgyzstan, and possibly countries in the European Union.

Four Dragons states it quickly notified WhiteBIT about the theft, yet found itself facing “constant evasions, anonymous messages, and a torrent of threats.” While WhiteBIT reportedly froze and returned approximately 5% of the stolen sum, Four Dragons alleges the rest of the funds were moved elsewhere, with WhiteBIT citing insufficient user identification (KYC) data to block all illicit transactions. Four Dragons criticizes the exchange for not pausing the suspect transfers in time, despite multiple alerts.

Leaked emails from an auditing firm—whose director once worked for Deloitte—have further fueled controversy. These messages allegedly accuse WhiteBIT of “fabricating” reserves and daily trading volumes to attract unsuspecting users worldwide. Tether, on the other hand, reacted swiftly once a court order was obtained, freezing part of the stolen USDT in under ten hours—an action that Four Dragons’ legal team cites as proof that more decisive intervention could have been taken by other platforms early on.

Meanwhile, WhiteBIT strongly denies all accusations, referring to them as a “coordinated information attack.” The exchange stresses its compliance with KYC and AML regulations, claiming it has cooperated with law enforcement to the fullest extent possible. It also highlights that it is responsible only for funds that remain on its own platform.

Four Dragons, however, insists this case exemplifies systematic laundering involving high-profile individuals and suggests that new criminal proceedings could be triggered if additional evidence surfaces. The company further reveals that inquiries about potential Interpol warrants—labeled A-15035/12-2024, A-15036/12-2024, A-15033/12-2024, and A-15032/12-2024—have been submitted, though an official response is still pending.

Beyond the immediate controversy, Kyrgyzstan’s budding crypto sector faces significant scrutiny: local authorities have won praise for acting rapidly, but the scandal raises questions about the region’s capacity to combat organized cybercrime. While WhiteBIT describes the affair as “politically motivated,” Four Dragons argues that greater regulatory clarity—particularly around asset freezes and cross-border collaboration—could make Kyrgyzstan a safer destination for crypto investments and a leader in tackling online financial fraud.