Federal Scrutiny of Binance Continues Over Alleged Iran-Linked Crypto Trades

Binance is facing yet another federal investigation over alleged Iran-linked crypto trades. This comes just three years after the company agreed to pay $4.3 billion to settle U.S. sanctions and money-laundering charges.

The U.S. Attorney's Office for the Southern District of New York and the Justice Department's Criminal Division are examining whether Binance knowingly allowed trading connected to Iran, in violation of U.S. sanctions. The investigation is focused on $61 million in alleged Iran-linked crypto trades that took place on the platform.

Bloomberg reported that Chinese companies Blessed Trust and Hexa Whale allegedly used Binance trading accounts to launder proceeds intended to benefit Iran's government and the Islamic Revolutionary Guard Corps. Prosecutors allege that Iran used cryptocurrency channels to launder more than $1.5 billion in illicit oil proceeds overall.

Binance spokesperson Ross O'Leary said the company maintains a 'zero-tolerance policy for sanctions violations,' but this claim is now under scrutiny. The company has also denied blocking internal compliance investigators from accessing information and has lobbied to reduce or remove independent oversight imposed as part of the 2023 settlement.