US prosecutors probe Binance over alleged Iran sanctions breaches

Federal prosecutors in Manhattan are examining whether cryptocurrency exchange Binance failed to stop trading that violated U.S. sanctions on Iran, according to sources familiar with the investigation.

Investigation scope

The inquiry is being handled by the Manhattan U.S. attorney’s office with involvement from the Justice Department’s criminal division in Washington. Authorities are assessing whether Binance knowingly allowed the prohibited trades.

Binance’s response

Binance issued a statement emphasizing its "zero‑tolerance policy for sanctions violations" and its cooperation with law‑enforcement agencies. The exchange also noted that it has taken steps to root out and shut down bad actors on its platform.

Background and prior enforcement

In 2021, Binance pleaded guilty to violations of U.S. banking and sanctions laws, paid a $4.3 billion penalty and accepted two corporate monitors. Co‑founder Changpeng Zhao stepped down as chief executive, served a brief prison term and was later pardoned.

Recent allegations and rebuttals

• Media reports have cited internal investigations that identified more than $1 billion moving through Binance to Iran‑linked entities, though Binance disputes the amounts and the flow of funds.
• Binance claims that at most $126.1 million reached wallets linked to Iran after multiple transaction hops, with only $24.1 million reaching wallets associated with Iran’s Revolutionary Guard Corps.
• The exchange has denied that any employee was dismissed for raising compliance concerns and has sued a newspaper over related reporting.

Related enforcement actions

Manhattan prosecutors recently sought forfeiture of $61 million they say originated from Iranian black‑market oil sales and was laundered through Binance. The funds were allegedly moved by two Hong Kong‑registered companies that misrepresented their business activities. Binance was not charged in that specific action.

The Treasury’s Operation Economic Outcast, announced in August, grants authority to designate foreign persons operating in Iran’s digital‑asset sector as part of broader sanctions targeting entities that finance Iranian proxies.