Binance Sanctions Probe
Binance Faces U.S. Justice Department Probe Over Alleged Iran Sanctions Violations
Anonymous
Key Points
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Earlier U.S. enforcement findings said Binance processed more than $898 million in trades between U.S.-based users and users in Iran from January 2018 through May 2022, providing historical context for the current scrutiny.
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The civil forfeiture complaint alleges that Blessed Trust and Hexa Whale used Binance accounts to launder more than $1.5 billion for the Iranian government and the Islamic Revolutionary Guard Corps, although Binance was not accused in that filing.
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The related forfeiture action seeks roughly $61 million in USDT held across 10 cryptocurrency wallets, according to the Southern District of New York complaint.
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Binance co-CEO Richard Teng said the exchange investigates, restricts or freezes accounts, offboards users and reports suspected violations to authorities; he also stated, “We did not permit any transactions with sanctioned individuals.”
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The investigation is unfolding amid a broader U.S. crackdown on Iranian crypto-linked funding; one report said the Treasury had frozen more than $1 billion in crypto funds tied to the Iranian regime since the Israel-Iran war began.
The Justice Department is investigating whether Binance knowingly allowed trades that violated U.S. sanctions on Iran, according to MarketScreener. Federal prosecutors in Manhattan are examining the crypto exchange's compliance controls and possible awareness of the transactions, which followed Binance's $4.3 billion settlement in 2023 for prior anti-money-laundering violations.
A related civil forfeiture case seeks roughly $61 million in cryptocurrency allegedly tied to Iranian black-market oil sales routed through accounts linked to the Chinese entities Blessed Trust and Hexa Whale, Devdiscourse reported. Binance has not been charged and says it maintains a zero-tolerance policy toward sanctions violations and is cooperating with authorities.
A History of Iran Trading on Binance's Platform
U.S. enforcement findings showed Binance processed more than $898 million in trades between U.S.-based users and Iranian users from January 2018 through May 2022, MarketScreener reported. This massive volume provides context for why prosecutors are now scrutinizing whether the exchange knew about or enabled sanctions violations during this period.
$1.5 Billion Allegedly Laundered for Iranian Government
The civil forfeiture complaint alleges that Blessed Trust and Hexa Whale used Binance accounts to launder more than $1.5 billion for the Iranian government and the Islamic Revolutionary Guard Corps, according to MarketScreener. Though the filing does not accuse Binance itself, it details how the accounts moved funds across the exchange's platform.
The forfeiture action targets roughly $61 million in USDT stablecoin held across 10 cryptocurrency wallets, the Southern District of New York complaint shows. Investigators allege this money originated from illegal Iranian oil sales and was routed through Binance to obscure its origins.
Binance Says It Blocked Sanctioned Accounts
Binance co-CEO Richard Teng said the exchange investigates suspected violations, restricts or freezes accounts, offboards users, and reports suspicious activity to authorities. He stated: "We did not permit any transactions with sanctioned individuals," emphasizing the company's compliance efforts, MarketScreener reported.
Wider U.S. Push Against Iranian Crypto Networks
The Binance investigation is part of a broader U.S. crackdown on Iranian crypto funding. The Treasury Department froze more than $1 billion in crypto funds tied to the Iranian regime since the Israel-Iran war began, according to reporting cited by Devdiscourse.
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