U.S. prosecutors are examining whether Binance, the world's largest cryptocurrency exchange, allowed transactions linked to Iran to pass through its platform. The Manhattan U.S. Attorney's Office and the Justice Department's criminal division are investigating Binance's compliance practices.
The probe follows a September 14 civil forfeiture complaint that sought to seize more than $61 million in USDT allegedly tied to Iranian oil proceeds. According to prosecutors, two Chinese companies—Blessed Trust and Hexa Whale—used Binance trading accounts to move funds from black-market Iranian oil sales.
Investigators identified a network of cryptocurrency addresses that allegedly received and distributed more than $1.5 billion from illicit Iranian oil sales. Prosecutors are examining whether Binance's compliance teams were negligent or knowingly permitted sanctioned entities to operate on the platform.
The Justice Department did not file the forfeiture case against Binance and did not accuse the exchange of wrongdoing in that complaint. The new criminal investigation focuses on the exchange's own compliance procedures.
Binance Co-CEO Richard Teng stated that the exchange has zero tolerance for sanctions violations and does not permit transactions with sanctioned individuals. He said Binance would continue cooperating with law enforcement and emphasized commitment to security and compliance.
This investigation echoes Binance's 2023 sanctions case, in which the company pleaded guilty to violations including allowing transactions involving sanctioned jurisdictions. Binance agreed to a $4.3 billion financial penalty, and founder Changpeng Zhao pleaded guilty separately.
