U.S. Treasury Demands Binance Comply With 2023 Monitoring After Iran-Linked Crypto Flow Reports

The U.S. Treasury Department privately demanded that Binance comply with the monitoring program tied to its 2023 guilty plea after reports alleged that more than $1 billion in cryptocurrency flowed through the exchange to Iran-linked entities in 2024 and 2025.

Bloomberg reported that the Treasury letter sought employee interviews and records tied to potential sanctions violations, and The Information said the request asked Binance to provide "critical data records and documents" tied to the monitorship.

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Binance said it is cooperating with regulators and told The Block that it "welcomes constructive feedback from the Treasury" as it works with the independent monitor.

The renewed pressure comes as Binance’s 2023 settlement included a $4.3 billion settlement and a three-year monitoring program overseen by U.S. authorities, according to bloomingbit and The Block.

The scrutiny has drawn attention from lawmakers, including Sen. Richard Blumenthal, who wrote, "I am writing with concern over mounting allegations of dangerously lax anti-money-laundering prevention by Binance," as he pushed federal agencies for updates on compliance oversight.

Bloomberg reported that the Treasury letter, dated April 19, followed reports alleging Iran-linked funds moved through Binance despite its 2023 compliance settlement, and Binance said it is committed to cooperating with its independent monitor.

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The Block reported that Treasury Under Secretary for Terrorism Gene Lange had "reminded [Binance] of its obligation to cooperate fully with the Treasury-imposed monitoring program" by sharing relevant information in a timely manner.

Binance disputed earlier claims about internal investigators and told The Block that no investigator was dismissed for raising compliance concerns or reporting potential sanctions violations.

The renewed demands place Binance’s sanctions and anti-money-laundering obligations under fresh focus, with The Block describing the Treasury’s move as a private requirement that Binance follow the monitoring program it agreed to in its 2023 guilty plea.

CoinCentral said the monitoring requirements stem from Binance’s 2023 settlement, where the exchange pleaded guilty to charges tied to anti-money-laundering and sanctions violations and agreed to pay about $4.3 billion in penalties while retaining independent compliance monitors.

The Block reported that the Justice Department appointed Forensic Risk Alliance’s Frances McLeod for a three-year term and that Treasury’s FinCEN selected Sullivan & Cromwell’s Sharon Cohen Levin for a five-year term to oversee compliance improvements.

In parallel, the U.S. Department of Justice opened investigations into Iran’s alleged use of Binance to evade sanctions and finance terrorist groups such as Yemen's Houthis, according to یورونیوز, adding another layer of potential consequences for Binance’s compliance posture.