Binance Under Fire Over Iran Sanctions Probe
US prosecutors in Manhattan and the DOJ's criminal division have launched a probe into whether Binance allowed Iran-linked crypto transactions to pass through its platform. The investigation is focused on whether the exchange's compliance teams were aware of these activities and failed to stop them.
The case involves two Chinese companies, Blessed Trust and Hexa Whale, which used Binance trading accounts to move funds from black-market Iranian oil sales. Prosecutors are examining whether Binance's compliance practices were grossly negligent or 'knowingly permitted' these sanctioned front companies to operate on their network.
This is not the first time Binance has faced scrutiny over Iran sanctions. In 2023, the company pleaded guilty to US sanctions and other violations after prosecutors found that its controls had allowed transactions involving sanctioned jurisdictions, including Iran. As a result, Binance agreed to a $4.3 billion financial penalty.
Binance Co-CEO Richard Teng has denied any wrongdoing, stating that the exchange has 'zero tolerance for sanctions violations or illicit activity.' He added that Binance would continue cooperating with law enforcement and would never compromise on security or compliance.