DOJ Probes Iran Using Binance to Evade U.S. Sanctions

U.S. authorities are reportedly probing whether Iran used Binance to evade American sanctions after reporting in the Wall Street Journal prompted investigations.

“Binance is hoping that suing The Wall Street Journal for defamation might help shake off a fresh round of government probes into how the cryptocurrency exchange failed to detect $1”

Ars Technica

Decrypt summarised the WSJ allegation that "the U.S. Justice Department is investigating Iran's use of Binance to evade U.S. sanctions," and Cointelegraph noted "The probe follows the Journal’s earlier report on Feb. 23," linking the current scrutiny to that coverage.

Ars Technica

Ars Technica adds that "Binance’s role in the large-scale violation of US sanctions laws is currently being investigated by the Justice and Treasury Departments," indicating multiple federal agencies are involved.

Reporting describes substantial transaction volumes and a focus on Iran-linked flows: the Wall Street Journal and outlets cited by them say officials have sought people with knowledge of about $1 billion in suspect transfers, and earlier reporting suggested still larger totals.

Decrypt quoted the WSJ that "officials are contacting those with knowledge of $1 billion in transactions that allegedly flowed through Binance to Iran-backed terror groups," while Decrypt also noted an earlier Journal allegation of "some $1.7 billion worth of transactions tied to Iranian and Russian sanctions evasion."

Bitcoin Magazine

Cointelegraph likewise referred to "roughly $1 billion that flowed through the platform to a network tied to Iranian proxy groups," and CoinDesk reported that the U.S.-appointed compliance monitor "has also requested records related to the Iranian-linked transfers."

Binance has strongly pushed back against those allegations, denying direct transactions with sanctioned entities and suing at least one outlet over its reporting.

“Binance sues Wall Street Journal as newspaper says U”

CoinDesk

Decrypt relayed Binance's statement that the exchange "categorically did not directly transact with any sanctioned entities," and reported that "Binance has sued the newspaper over what it termed "false and defamatory reporting" in an earlier story."

Cointelegraph likewise wrote that "Binance categorically denied claims that it dismantled any compliance investigation in a statement to Cointelegraph," and noted the company "published a blog post ... which details the fund flows and addresses what Binance describes as false claims made against it."

CoinDesk also noted Binance's prior settlement context, reporting that after its 2023 plea the company "operates under a U.S.-appointed compliance monitor," a factor Binance highlights when disputing the recent reporting.

The reporting has prompted congressional questions and sits against Binance's prior legal settlement, raising renewed scrutiny of the exchange's compliance.

Ars Technica reported that "Congress members also took notice, including Sen. Richard Blumenthal (D-Conn.), ranking member of the Senate Permanent Subcommittee on Investigations (PSI), who launched an additional inquiry," and that Blumenthal in his oversight letter "demand[ed] that Binance explain how it managed to overlook the money-laundering for so long and why compliance staff members were fired."

Cointelegraph

Multiple outlets also recalled Binance's 2023 plea: CoinDesk wrote that "In 2023, the company pleaded guilty to violating U.S. anti-money laundering and sanctions laws and agreed to pay $4.3 billion in penalties," and both Cointelegraph and Ars Technica noted that "In taking that plea deal, Binance admitted to violating anti-money laundering and sanctions laws and paid a $4.3 billion fine, and its founder, Changpeng Zhao, eventually pled guilty to a related charge."

Cointelegraph and CoinDesk additionally recorded that Changpeng “CZ” Zhao "served four months in prison before receiving a presidential pardon in October 2025," underscoring the complex legal backdrop to the new probes.