U.S. DOJ Investigating Whether Iran Used Binance to Evade Sanctions

The U.S. Department of Justice (DOJ) is reportedly investigating whether Iranian networks used the cryptocy exchange Binance to evade U.S. sanctions, according to reporting by The Wall Street Journal. 

Officials are examining transactions that allegedly moved through Binance to entities linked to Iran-backed militant groups, including networks connected to Yemen’s Houthi movement. Authorities have begun contacting individuals familiar with the transactions as they gather evidence related to the case. 

Alleged Billions in Iran-Linked Transactions

The investigation reportedly stems from an earlier internal compliance probe at Binance that identified more than $1 billion in crypto transactions tied to Iranian networks. 

According to reports, investigators flagged up to $1.7 billion in transfers moving through the exchange, some of which were allegedly linked to organizations associated with the Islamic Revolutionary Guard Corps (IRGC) and other sanctioned entities. 

U.S. authorities are now reviewing whether those funds were used to circumvent international sanctions imposed on Iran.

However, it remains unclear whether the DOJ investigation is targeting Binance itself, individual users on the platform, or both. 

Binance Pushes Back and Files Lawsuit

Binance has strongly disputed the allegations and recently filed a defamation lawsuit against The Wall Street Journalover its reporting on the issue. 

The company says it did not directly transact with sanctioned entities and claims the reports misrepresent its compliance practices. Binance also stated that after detecting suspicious activity it offboarded problematic accounts and cooperated with law enforcement authorities. 

The exchange has argued that the reporting caused reputational damage and led to unnecessary regulatory scrutiny.

Heightened Scrutiny After Past Compliance Violations

The controversy comes as Binance remains under heavy regulatory oversight following a $4.3 billion settlement with U.S. authorities in 2023 for anti-money-laundering and sanctions compliance failures. 

That settlement required the company to strengthen its compliance controls and operate under monitoring by U.S. regulators. Binance founder Changpeng Zhao also stepped down as CEO and served a prison sentence as part of the agreement. 

Because of that history, any new investigation involving sanctions violations could bring renewed regulatory pressure on the world’s largest cryptocy exchange.