US Justice Department Probes Binance Compliance With $4.3 Billion Settlement

The US Justice Department is examining whether Binance, the world’s largest cryptocurrency exchange, has complied with its 2023 settlement. The review comes as prosecutors investigate possible violations of US sanctions on Iran and whether the exchange followed through on commitments to strengthen anti-money laundering controls and internal compliance systems. If Binance is found to have breached the agreement, it could face additional charges and billions of dollars in further fines.

Tyson Duba, head of the Justice Department’s criminal division, told Bloomberg on Oct. 9 that officials are reviewing whether Binance is complying with the settlement. He added that an investigation involving the department is ongoing, but declined to discuss specific facts or the status of the probe.

The investigation is being handled by the US Attorney’s Office for the Southern District of New York together with the Justice Department’s criminal division in Washington. Prosecutors are examining whether Binance failed to block some transactions, potentially violating US sanctions on Iran.

Prosecutors on Sept. 14 filed a civil forfeiture complaint seeking about $61 million in cryptocurrency believed to be proceeds from the illegal sale of Iranian crude oil and petroleum products. They allege Chinese companies used Binance trading accounts to launder the proceeds and transfer them to the Iranian government and related groups.

Binance agreed in 2023 to pay a total of $4.3 billion to US authorities after admitting violations involving anti-money laundering rules, money-transmitting registration requirements and sanctions laws. The company also agreed to strengthen internal controls and submit to independent monitoring. Under the settlement, Binance must report to the government any evidence or allegations related to money laundering, financial transactions or sanctions violations.

If Binance is found to have violated the settlement, it could be prosecuted again for conduct covered by the 2023 deal or face additional fines running into the billions of dollars.

Binance stressed its cooperation with law enforcement. In a statement, the company said it is continuing to strengthen its control framework and remains fully committed to cooperating with authorities.