US prosecutors accused a 25 year old man for running a crypto exchange that converted some 25 million USD from fiat to crypto currencies and vice versa. According to the prosecutors Kunal Kalra known as “Kumar,” facilitated money laundering of funds obtained by illegal activities, including from trade of illegal drugs on the dark net. According to the court files Kalra operated a virtual currency exchange in the US without obtaining any permission from the authorities in the period between May 2015 to October 2017, accepting only big orders, where clients paid fees of at least 5000 USD.
Unlikely, this man was a criminal for real and used his bogus exchange to launder his drug trade profits.
the wording seemed a bit ambiguous. All exchanges are laundering money; it's just a matter of whether the operators are facilitating it.