The U.S. Department of Justice has launched an investigation into whether Iranian networks used the crypto exchange Binance to evade American sanctions, according to a report by The Wall Street Journal.
Summary
- he U.S. Department of Justice is investigating whether Iran used Binance to circumvent U.S. sanctions, according to a report by The Wall Street Journal.
- Investigators are examining transactions linked to more than $1 billion that allegedly moved through Binance to networks tied to Iranian-backed groups.
- Binance says it did not directly transact with sanctioned entities and that internal investigations led to suspicious accounts being shut down.
The probe is examining digital transactions that allegedly routed more than $1 billion through the platform, potentially helping fund financial networks linked to Iran-backed groups, people familiar with the matter told the newspaper.
Federal investigators have reportedly contacted individuals with knowledge of the transactions to request interviews and gather evidence as they assess how the funds moved through the exchange. Authorities have not yet confirmed whether the investigation targets Binance itself for possible misconduct or focuses solely on users who may have exploited the platform to bypass sanctions.
The inquiry follows an internal Binance investigation into suspicious activity tied to a payments intermediary that allegedly facilitated transfers from Chinese clients into crypto wallets associated with Iranian-linked networks.
Binance said it cooperated with law enforcement and eventually shut down the account linked to the transactions. The exchange stated that subsequent reviews found only about $24 million flowed into wallets associated with Iran’s Islamic Revolutionary Guard Corps, far less than initial estimates tied to the broader network.
The investigation places Binance back in the regulatory spotlight after the company reached a $4.3 billion settlement with U.S. authorities in 2023 over anti-money-laundering and sanctions violations.
The exchange maintains that it complies with international sanctions laws and does not directly transact with sanctioned entities. Still, the latest probe highlights ongoing concerns among regulators about how cryptocurrencies and global exchanges could be used to move funds across borders despite financial restrictions.
The Justice Department has not publicly commented on the investigation, and it remains unclear whether the inquiry will result in formal charges or regulatory action.
