Binance Faces US Probe Over Alleged Iran Sanctions Violations

Binance is under investigation by US federal prosecutors over possible violations of sanctions on Iran and whether the crypto exchange knowingly allowed prohibited trading. The probe adds to Binance's history of US regulatory scrutiny following its guilty plea in 2023.

The investigation, led by federal prosecutors from the US Attorney's Office for the Southern District of New York and the Justice Department's criminal division in Washington, examines whether Binance's systems and controls adequately prevented prohibited Iran-linked trading. Binance has already faced significant US enforcement action over its handling of sanctions and anti-money laundering requirements.

In 2023, the company pleaded guilty to federal charges involving violations of the Bank Secrecy Act, operating as an unregistered money-transmitting business, and violating the International Emergency Economic Powers Act. Binance agreed to pay more than $4.3 billion in penalties and forfeiture, while its then-CEO and founder, Changpeng Zhao, also pleaded guilty to failing to maintain an effective anti-money laundering programme.

The current investigation does not establish that Binance committed a new sanctions violation. Prosecutors are examining the matter, and no new criminal charges against the exchange have been announced. Binance maintains a zero-tolerance approach to sanctions violations and is cooperating with authorities.