Binance is under investigation by the U.S. Justice Department over potential violations of sanctions on Iran, according to a Bloomberg News report from September 22. The probe is being led by the Attorney's Office for the Southern District of New York, with the DOJ's Criminal Division in Washington, D.C., also involved. Federal prosecutors are examining whether the exchange failed to stop certain trading activity on its platform in violation of U.S. sanctions.
The investigation remains in its preliminary stages, with no charges announced. The DOJ has not released details about the investigation, and whether any charges will follow depends on evidence gathered during the probe.
In response, Binance reiterated its compliance stance. Co-CEO Richard Teng clarified that Binance was not named as a defendant in a related civil forfeiture action seeking approximately $61 million in cryptocurrency tied to black-market Iranian oil sales. Teng stated that the exchange did not permit transactions with sanctioned individuals and has implemented procedures including account restrictions, account freezes, user offboarding, and reporting to relevant authorities.
Background on Binance's Compliance History
Binance pleaded guilty in 2023 to violating anti-money laundering and sanctions laws in a DOJ lawsuit, agreeing to pay approximately $4.3 billion in penalties. Founder Changpeng Zhao also pleaded guilty, stepped down as CEO, and served four months in prison. Since then, the company stated it has strengthened its security and compliance measures in coordination with government authorities.
