Binance, the world's largest cryptocurrency exchange, is fighting a legal firestorm against mainstream media. On February 24, co-CEO Richard Teng publicly rejected claims by the Wall Street Journal (WSJ) and the New York Times, calling them “defamatory,” and dispatched a formal legal letter demanding immediate correction and removal of the articles.
Fortune First: $1B USDT Allegedly Reached Iran
The controversy erupted after Fortune magazine reported in early February that an internal Binance probe had found over $1 billion in Tether (USDT) flowing through the Tron blockchain to Iran-linked sanctioned entities between 2024 and 2025. The report added that several staffers who led the investigation were terminated in late 2025 after reporting findings to management, sparking doubts about the exchange's compliance credibility.
On February 23, the Wall Street Journal and the New York Times followed up, with the latter pegging the sum at $1.7 billion and naming the Islamic Revolutionary Guard Corps (IRGC) and Yemen's Houthi rebels as recipients. Citing internal documents, the reports alleged that despite the findings being escalated to Richard Teng and other executives, the company later suspended or fired the investigators for “violating company agreements.”
Binance Fires Back with Law Firm Letter
In a lengthy post on X, Teng said Binance had proactively offered detailed facts and data to reporters before publication, but WSJ “ignored that information and published defamatory allegations.” The exchange has now retained Withers Bergman LLP to send a formal letter to the WSJ editor-in-chief, demanding a retraction, correction, and temporary removal of the piece.
Binance also released a blog post titled “Setting the Record Straight,” asserting that its exposure to sanctioned regions has dropped by 97% since 2024 and that it has spent hundreds of millions to strengthen compliance. Crucially, the post stated that no employee was fired for reporting sanctions concerns.
Post-CZ Growing Pains: Compliance Image vs. Regulatory Scrutiny
The episode underscores the hurdles Binance faces after paying a record $4.3 billion penalty in late 2023 and submitting to U.S. oversight. Under Teng, the exchange has tried to present itself as a “mature” player, but media investigations keep dragging its past into the spotlight. Binance says it plans to submit relevant reports to the U.S. Department of Justice to clear its name. Whether this will trigger fresh regulatory probes or litigation is now a key market watchpoint.