US Justice Department Probes Whether Binance Violated Iran Sanctions

U.S. federal prosecutors are investigating whether Binance, the world's largest cryptocurrency exchange, violated U.S. sanctions rules by failing to block certain transactions tied to Iran, Bloomberg reported.

Bloomberg reported on September 21 that federal prosecutors in Manhattan are reviewing Binance's sanctions compliance controls. The U.S. Justice Department's criminal division is also participating in the probe. Authorities are examining whether Binance knowingly allowed the transactions in question.

It is unclear which transactions prosecutors are scrutinizing. It also remains uncertain whether the investigation will lead to charges.

Binance said in a statement that it maintains a zero-tolerance policy on sanctions violations. It added that it is fully cooperating with law enforcement and continues to work to identify and block malicious actors.

Binance has previously been penalized by U.S. authorities over sanctions and anti-money-laundering compliance failures. About three years ago, the company pleaded guilty to charges that it failed to comply with U.S. banking and sanctions laws and agreed to pay a $4.3 billion fine.

Since then, Binance has emphasized that it has strengthened its compliance systems. In February, it said more than 1,500 employees, or about 25% of its workforce, were assigned to compliance functions.

U.S. prosecutors have also recently expanded investigations into crypto fund flows tied to Iran. On September 14, federal prosecutors in Manhattan sought forfeiture of $61 million allegedly generated from Iranian black-market oil sales and laundered through Binance. Prosecutors did not accuse Binance itself of wrongdoing in that case.

A separate report in February said an internal Binance investigation found that more than $1 billion moved through the platform from entities linked to Iran. Binance disputed parts of that report, while saying its compliance framework is robust and that it is cooperating with law enforcement.

Binance co-founder Changpeng Zhao pleaded guilty as part of the 2023 settlement to failing to maintain an effective anti-money-laundering program and stepped down as chief executive officer. He later served four months in prison and was pardoned by U.S. President Donald Trump last year.