Federal prosecutors in Manhattan are investigating whether Binance failed to block transactions connected to Iran, opening a new sanctions-focused review of the world’s largest cryptocurrency exchange. The Justice Department’s criminal division is also involved, and authorities are examining whether the company knowingly allowed the transactions in question.
The scope of the transactions under review has not been disclosed, and it is not clear whether the probe will result in charges. The inquiry nevertheless adds to Binance’s long-running legal and compliance scrutiny in the United States, particularly around sanctions controls and anti-money-laundering obligations.
New focus on Iran-linked activity
According to the report, the investigation centers on whether Binance violated U.S. sanctions rules by not stopping certain Iran-related transfers on its platform. Prosecutors are said to be looking not only at the transactions themselves but also at whether Binance had knowledge that such activity was taking place.
The involvement of the Justice Department’s criminal division indicates the matter is being treated as more than a routine compliance review. Even so, the available information does not identify the specific transfers under scrutiny, and no enforcement outcome has been announced.
Broader scrutiny of crypto flows
The Binance inquiry appears to sit within a wider U.S. push to examine cryptocurrency movements tied to Iran. Prosecutors have expanded related investigations and are pursuing a forfeiture case seeking $61 million that authorities allege was laundered through Binance from Iranian black-market oil sales.
That action does not by itself determine Binance’s liability in the current probe, but it shows investigators are looking beyond isolated transactions and into larger cross-border crypto flows that may intersect with sanctions enforcement.
Binance’s record and response
Binance has already faced major U.S. penalties over sanctions and anti-money-laundering compliance failures. The company previously entered a $4.3 billion settlement, one of the most significant enforcement outcomes in the crypto sector.
In response to the latest scrutiny, Binance has said it has a zero-tolerance policy for sanctions violations, is cooperating with law enforcement, and continues to strengthen its compliance systems. The company has also said its compliance framework is robust, while disputing parts of a separate report tied to Iran-linked activity on the exchange.
Earlier findings and what comes next
A separate internal Binance inquiry had found that more than $1 billion moved through the platform from entities linked to Iran. While Binance challenges parts of that account, the finding has added to questions about how effectively the exchange screened higher-risk users and transactions.
The company’s recent history remains central to how the new probe is viewed. Binance co-founder Changpeng Zhao pleaded guilty in the 2023 settlement to failing to maintain an effective anti-money-laundering program, stepped down as chief executive, served four months in prison, and was pardoned last year. For now, the next confirmed step is the continuation of the federal investigation, with no charges publicly detailed and no final conclusion announced.
Source: en.bloomingbit.io