U.S. regulators have launched a fresh probe into Binance over claims that the exchange was used to circumvent sanctions on Iran. The Wall Street Journal reported on Wednesday that U.S. authorities began examining whether Iran used the platform to bypass sanctions, focusing on transactions linked to networks allegedly supporting Iran-backed militant groups.
Probe Targets Iran-Linked Transactions, Binance Strikes Back
Sources say officials from the U.S. Department of Justice have contacted individuals connected to the transactions, seeking evidence on fund flows. It remains unclear whether the investigation targets Binance as a whole or specific users. Binance leadership quickly denied the allegations and filed a defamation lawsuit against the Journal the same day. A company spokesperson said in a statement: "Binance categorically did not dismantle any compliance investigation. The WSJ continues to report the same falsities." The statement added that Binance's investigation uncovered a sophisticated, multi-jurisdictional pattern of financial activity spanning Asia, the Middle East, and beyond, and that affected accounts have been removed.
Earlier Report Claims Binance Halted $1B Probe
The controversy escalated after the Journal published earlier findings in late February, claiming Binance halted an internal investigation into over $1 billion in suspicious transactions. The network allegedly funded groups connected to Iran. The report also stated that Binance dismissed employees who examined those transfers and that the network remained active afterward. The New York Times repeated similar allegations, drawing attention from policymakers and regulators in Washington.
Political and Legal Pressure Builds Amid Previous $4.3B Settlement
Senator Richard Blumenthal has opened a separate inquiry into possible sanctions violations tied to Binance. Federal officials have contacted sources with knowledge of Iranian transactions to gather additional evidence. This new scrutiny comes after Binance's previous legal settlement with U.S. authorities. In 2023, the exchange and its former CEO Changpeng Zhao were accused of violating anti-money laundering and sanctions regulations. Binance agreed to pay a $4.3 billion fine and impose "stringent compliance controls." The settlement required Binance to monitor users, rescreen accounts against sanctions lists, and accept an independent monitor for five years. Zhao resigned from his leadership role and later served a prison sentence. Former U.S. President Donald Trump granted Zhao a pardon in October.