What Did the Reports Allege?
Binance has pushed back against media reports claiming the exchange dismissed internal investigators after they uncovered sanctions-related activity involving Iran. According to reports published by The New York Times and The Wall Street Journal, investigators found that roughly $1.7 billion in cryptocurrency flowed through Binance accounts to Iranian-linked entities.
The New York Times reported that more than 1,500 Binance accounts had been accessed from Iran and that funds from two accounts were routed to entities tied to Iran’s Islamic Revolutionary Guards Corps. One of those accounts reportedly belonged to Blessed Trust, a Hong Kong payments firm that acted as a fiat partner for Binance.
Leung Ka Kui, a director of Blessed Trust, told the NYT that the firm did not knowingly process sanctions-breaching transactions or make payments to Iranian entities, describing its work with Binance as limited to routine disbursements such as invoices and payroll.
Separately, the Wall Street Journal reported that another Hong Kong entity, Hexa Whale Trading, moved roughly $500 million in USDT to the same Iranian network. According to documents cited by both outlets, investigators concluded that funds ultimately supported Iran-backed groups, including Yemen’s Houthis.
Investor Takeaway
Were Investigators Fired?
Both publications reported that members of the internal investigative team were suspended or dismissed in 2025 after presenting their findings. The Wall Street Journal said the probe was dismantled weeks after Binance founder Changpeng Zhao received a U.S. presidential pardon in October. The New York Times reported that at least four investigators were disciplined for alleged mishandling of confidential client data shortly after raising concerns about Iran-linked transactions.
Fortune has also reported that several senior compliance officials have departed in recent months, as the exchange prepares for the expected exit of Chief Compliance Officer Noah Perlman later this year.
How Did Binance Respond?
In a statement, a Binance spokesperson rejected the allegations.
“We strongly dispute the assertions made in recent reports,” the spokesperson said. “Binance did not violate sanctions laws in respect of the transactions described … [The] internal review did not find evidence of violations of applicable sanctions laws or regulations related to the transactions described.”
The spokesperson added: “Binance detected and reported suspicious activity, and this is evidence that our controls are working, not the opposite.
In a separate post on X, Binance said it had reduced direct exposure to the four largest Iranian crypto exchanges by more than 97.3% between January 2024 and January 2026, from $4.19 million to about $0.11 million.
“Public blockchains are permissionless. Anyone can send assets to an exchange deposit address. Exposure cannot be reduced to zero,” the company wrote.
Changpeng Zhao also responded on X, saying media coverage repeated “negative narratives” from fired employees and describing Binance as having the “best compliance program in the industry.”
Investor Takeaway
Why This Matters Now
Binance continues to operate under compliance reforms imposed after its 2023 U.S. settlement, in which the exchange pleaded guilty to anti-money-laundering and sanctions violations and agreed to pay $4.3 billion in penalties. Zhao stepped down as CEO as part of the agreement, with Richard Teng taking over leadership. Zhao was later pardoned by President Donald Trump after serving four months in prison.
The latest dispute does not introduce new enforcement action, but it reopens questions about internal oversight and how crypto exchanges monitor cross-border flows tied to sanctioned jurisdictions. With global regulators keeping close watch on sanctions compliance, the handling of internal investigations — and the response to their findings — remains a focal point for market participants.
