The U.S. Department of Justice has launched an investigation into transactions processed through Binance that may be linked to efforts to bypass sanctions against Iran. Investigators are questioning people familiar with the transactions and reviewing the exchange’s internal documents.
The probe involves transfers totaling more than $1 B which, according to internal company documents, may have moved through a financing network for groups supported by Tehran. Authorities have not yet clarified whether they are examining the actions of the exchange itself or only those of its clients.
In 2023, Binance admitted to violating U.S. anti-money-laundering and sanctions laws and agreed to pay a $4.3 B fine. The exchange’s founder, Changpeng Zhao, pleaded guilty at the time and served four months in prison.
$1.7 B in Suspicious Transfers
An internal Binance review conducted last fall identified transactions totaling $1.7 B. The funds came from clients in China and were sent to wallets that, according to employees, were used by Iran to finance affiliated groups.
More than $1 B of this amount passed through the Hong Kong payment company Blessed Trust. Binance says it did not conduct direct transactions with sanctioned entities. At the same time, about $24 M ended up in wallets linked to the Islamic Revolutionary Guard Corps.