The U.S. Department of Justice is investigating the cryptocurrency exchange Binance for its alleged role in Iran-linked transactions that may have evaded sanctions. This probe comes less than three years after Binance's $4.3 billion settlement with U.S. authorities in 2023 for sanctions and anti-money-laundering violations. Binance denies any wrongdoing, stating its internal reviews found no sanctions breaches.
The Justice Department has reopened scrutiny on Binance, the world's largest cryptocurrency exchange, focusing on its potential facilitation of transactions tied to Iran in violation of U.S. sanctions. This development follows Binance's guilty plea in November 2023, when it admitted to failures in complying with sanctions and anti-money-laundering laws, resulting in penalties exceeding $4.3 billion and the appointment of a U.S. monitor. Founder Changpeng Zhao received a pardon, but the exchange now faces questions about the effectiveness of its post-settlement compliance measures.
Reports from the Wall Street Journal indicate that Binance's internal investigators had flagged suspicious activities, including more than $1 billion linked to an entity called Blessed Trust and approximately $1.7 billion in overall suspect transfers. One account was reportedly labeled as internal, prompting concerns over how intermediary accounts and controls were managed for Iranian entities and proxies. Binance contests these claims, asserting that its reviews identified no sanctions violations, that implicated entities were investigated and removed from the platform, and that no direct transactions occurred with Iran-based users.
In response to media coverage, Binance has filed a defamation lawsuit. The exchange reports significant improvements in risk management, with exposure to illicit wallets dropping nearly 97% from early 2024 to mid-2025, including a 97.3% reduction in connections to major Iranian crypto exchanges.
This case unfolds amid broader U.S. efforts to curb crypto's role in sanctions evasion. On January 30, the Treasury Department sanctioned UK-registered exchanges Zedcex and Zedxion for processing over $94 billion in transactions linked to Iran. Senator Richard Blumenthal launched an inquiry on February 24, referencing the $1.7 billion in transfers, Blessed Trust, Hexa Whale, and about 2,000 associated accounts. Senate Banking Democrats urged Treasury and DOJ investigations on February 27.
Binance's scale amplifies the stakes: it had 300 million registered accounts by December 2025, handled over $20 billion in daily spot volume, and commanded 38.3% of centralized exchange spot activity that month, with $361.8 billion in monthly volume. Current market data shows Bitcoin at $69,909 and BNB at $643, with no immediate signs of panic but potential for shifts in user confidence.
