The U.S. Department of Justice is investigating whether Binance, the world's largest cryptocurrency exchange by trading volume, facilitated transactions linked to Iranian entities seeking to circumvent international sanctions, according to reporting by the Wall Street Journal.
Investigators are analyzing approximately $1.7 billion in cryptocurrency transactions that may have involved Iranian intermediaries, with more than 1,500 accounts flagged as potentially connected to Iran-based actors. Some of the transactions allegedly flowed through intermediaries based in Hong Kong, and a portion may have involved connections to Iran's Islamic Revolutionary Guard Corps, according to the agency's findings.
Binance rejected the allegations, stating that the exchange has substantially strengthened its compliance infrastructure following a $4.3 billion settlement with U.S. authorities in 2023. The settlement required the exchange to implement enhanced anti-money laundering protocols and sanctions screening mechanisms. The investigation represents a fresh compliance challenge for Binance, which has faced sustained regulatory scrutiny from U.S. and international authorities over adequacy of its financial crime controls. The probe signals ongoing tension between regulators and major cryptocurrency platforms over their role in preventing illicit capital flows.