The US Justice Department is reviewing whether Binance has complied with the terms of its 2023 settlement with the government, according to Bloomberg, which cited Tyson Duva, head of the department’s Criminal Division.
The review is taking place alongside a federal investigation into whether the crypto exchange knowingly allowed transactions that violated US sanctions on Iran. Duva confirmed the department’s involvement, but he did not say Binance had breached the agreement, and no new charges have been filed against the company or its employees.
Fresh scrutiny of a record settlement
Binance and founder Changpeng Zhao pleaded guilty in November 2023 as part of a major resolution with US authorities. Under that deal, the exchange agreed to pay about $4.3 billion.
The settlement also imposed long-term oversight. Binance was placed under a three-year Justice Department monitorship led by Forensic Risk Alliance, alongside a separate five-year monitoring arrangement with the Financial Crimes Enforcement Network, or FinCEN.
Iran sanctions investigation adds pressure
The current review comes amid questions about whether Binance handled transactions connected to activity barred by US sanctions on Iran. Prosecutors are examining whether the exchange may have knowingly allowed such transfers to pass through its platform.
In September, prosecutors moved to seize about $61 million in crypto that investigators said stemmed from illegal Iranian oil sales and had been routed through Binance accounts.
Other reporting has highlighted larger flows
Bloomberg’s report follows other scrutiny tied to Iranian-linked activity on the exchange. A separate Wall Street Journal investigation found that accounts linked to Iranian financier Babak Zanjani processed roughly $850 million.
According to that investigation, some of those funds may have been tied to Iran’s Islamic Revolutionary Guard Corps. The source material does not say that finding led to charges against Binance.
What is at stake for Binance
For now, the Justice Department has not accused Binance of violating the 2023 plea deal. Duva did not state that the company was in breach, and the department has not brought fresh criminal counts against Binance or its staff.
If prosecutors ultimately conclude that Binance failed to meet the settlement terms, the consequences could be significant. Bloomberg reported that such a finding could reopen criminal prosecution over conduct that had already been resolved and could expose the company to new multibillion-dollar penalties.
The next confirmed step is the DOJ’s ongoing review of Binance’s compliance while the Iran-related investigation continues. Until prosecutors make a formal determination, the question of whether the settlement was breached remains unresolved.
Source: dailyhodl.com