US Justice Department Probes Whether Binance Violated Iran Sanctions
Summary
- U.S. federal prosecutors and the Justice Department’s Criminal Division are investigating whether Binance violated sanctions rules through Iran-related transactions.
- Binance has emphasized strengthening its compliance framework since agreeing to pay a $4.3 billion fine over past sanctions and anti-money-laundering compliance failures.
- Federal prosecutors in Manhattan are expanding their investigation into Iran-linked cryptocurrency flows, including a move to seize $61 million tied to Iranian black-market oil sales.
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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 examining Binance’s sanctions-compliance systems. The U.S. Justice Department’s Criminal Division is also participating in the probe. Authorities are investigating whether Binance knew about the transactions at issue and allowed them to proceed.
It is unclear which specific transactions prosecutors are examining. It is also uncertain whether the investigation will result in charges.
Binance said in a statement that it maintains a zero-tolerance policy toward sanctions violations. It added that the company 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 framework. In February, it said more than 1,500 employees, or about 25% of its total workforce, were assigned to compliance roles.
U.S. prosecutors have recently broadened investigations into cryptocurrency flows linked to Iran. On September 14, federal prosecutors in Manhattan moved to seize $61 million that was allegedly generated from Iranian black-market oil sales and laundered through Binance. Prosecutors did not identify Binance itself as a participant in illegal conduct in that case.
A separate report in February said Binance’s internal investigation found that more than $1 billion moved through the platform for entities linked to Iran. Binance disputed parts of that report while maintaining that its compliance controls are robust and that it is cooperating with law enforcement.
Binance co-founder Changpeng Zhao stepped down as chief executive officer after pleading guilty in the 2023 settlement to failing to maintain an effective anti-money-laundering program. He later served four months in prison and was pardoned last year by U.S. President Donald Trump.
