Binance Faces New Scrutiny Over Alleged Iran-Linked Trading

US prosecutors are investigating whether Binance knowingly allowed Iran-linked trading on its platform, potentially violating sanctions.

The inquiry is reportedly being led by the Manhattan US Attorney's Office and involves the Justice Department's criminal division. The investigation focuses on possible sanctions violations related to Binance's activities after its 2023 settlement with US authorities.

Binance agreed to pay $4.32 billion in forfeiture and penalties as part of the settlement, which also included strengthening its anti-money-laundering and sanctions systems. However, this latest scrutiny raises questions about whether the exchange's post-settlement controls were effective in preventing prohibited transactions.

The investigation follows a separate civil action filed by Manhattan prosecutors seeking $61 million in cryptocurrency allegedly derived from black-market Iranian oil sales. While this case involves activity extending through 2024 and 2025, it does not charge Binance with laundering the money and instead focuses on the involvement of two Hong Kong companies using Binance accounts.