Binance is facing another compliance controversy after Fortune reported that senior internal investigators identified more than $1 billion in suspected Iran-linked fund flows through the exchange. The transactions were said to involve USDT on the Tron blockchain, and the investigators who compiled the findings were later dismissed.
Questions return after Binance's prior U.S. settlement
The report lands after Binance's 2023 resolution with U.S. authorities, when the company admitted violations tied to anti-money laundering rules, KYC requirements, and other regulations. Binance agreed to pay $4.3 billion, while founder Changpeng Zhao pleaded guilty, was later sentenced to four months in prison, and stepped down as chief executive. At the time, the exchange said it would move into a more mature regulatory phase and expand its compliance ranks.
According to Fortune, citing unnamed sources and internal documents, the flagged activity ran from March 2024 to August 2025. During that period, entities linked to Iran allegedly moved over $1 billion through Binance using USDT on Tron, raising concerns that the flows may have breached U.S. sanctions on Iran.
Dismissals and departures hit the compliance function
The report says that beginning in late 2025, at least five senior investigators were dismissed after submitting internal reports. At least three of them had backgrounds in law enforcement agencies in Europe or Asia. Several had worked on sensitive investigations involving sanctions evasion and counter-terrorist financing. Former employees announced their departures briefly on LinkedIn and did not provide details.
Fortune also said that in the past three months, at least four senior compliance executives either left or were asked to leave, adding to signs of turnover inside the compliance team. Robert Appleton, a former U.S. Justice Department sanctions official who is now a lawyer, said it was “quite concerning” if internal investigators were dismissed for surfacing potential misconduct while the company remained under government oversight.
Binance says it complies with sanctions laws
A Binance spokesperson said the company could not comment on ongoing investigations or individual personnel matters. The spokesperson added that Binance is committed to complying with sanctions laws and regulations in the markets where it operates, and that employees who violate company policy may be terminated. Binance also said it will keep cooperating with law enforcement and that its core compliance team remains in place.