The US Department of Justice is reviewing Binance's compliance with its 2023 settlement agreement, according to Tysen Duva, head of the Justice Department's Criminal Division, who confirmed the investigation to Bloomberg on October 9. Binance agreed to pay $4.3 billion to resolve a criminal case in 2023.
Three Areas Under Review
Federal prosecutors are examining several incidents involving suspicious activity on the platform. The Wall Street Journal reported that accounts tied to financier Babak Zanjani processed approximately $850 million through Binance. The exchange says it closed those accounts after identifying suspicious trades that drew inquiries from US and Swiss authorities.
In September, prosecutors filed a $61 million forfeiture case alleging that two Chinese firms, Blessed Trust and Hexa Whale, used Binance accounts to launder proceeds from Iranian oil sales. According to the complaint, the wider network moved more than $1.5 billion. Binance stated it investigated and removed both companies.
The third area of concern involves the exchange's response to suspected sanctions violations. Earlier reports indicated prosecutors were examining whether Binance knowingly allowed prohibited trades.
The DOJ has not identified which incidents, if any, are part of its settlement review. No wrongdoing has been alleged against Binance or its employees in the forfeiture complaint.
Precedent From Other Companies
Previous cases involving settlement breaches show varied outcomes. Ericsson admitted breaching a deferred-prosecution agreement in 2023, pleaded guilty, and paid an additional $206.7 million with an extended compliance monitor term. Standard Chartered faced more than $1 billion in global penalties in 2019 over historical Iran sanctions violations. Boeing was found to have breached its agreement in 2024 but later secured a new non-prosecution deal, with its criminal charge dismissed in 2025.
Possible Outcomes
Past cases suggest several possible outcomes ranging from tougher compliance oversight to additional fines or fresh criminal proceedings. A negotiated resolution appears more likely than an immediate move against Binance's operations. Prosecutors would have a stronger case for criminal charges if evidence showed deliberate sanctions breaches or concealment. The central question is what Binance knew about the suspicious activity and how quickly it responded.
