Binance under DOJ investigation for Iran sanctions evasion
6.6 Regulation The DOJ is investigating Binance for allegedly enabling Iran to evade US sanctions, with over $1 billion in transactions under review. The case follows prior legal actions and raises new concerns about Binance's compliance.
The US Department of Justice has launched a formal investigation into Binance, a leading cryptocurrency exchange, over allegations it facilitated the evasion of US sanctions by Iranian networks. Reports suggest that between $1 billion and $1.7 billion may have been routed through Binance to groups linked to Iran, including entities associated with terrorism such as Yemen’s Houthi militants and the Islamic Revolutionary Guard Corps. Binance’s internal compliance teams reportedly detected suspicious transactions and alerted management. However, some investigators were allegedly terminated or disciplined after raising concerns. This probe comes after Binance agreed to a $4.3 billion settlement in 2023 for previous violations of anti-money laundering and sanctions laws. Authorities are now determining whether the misconduct was institutional or limited to specific users. Binance maintains it has not directly transacted with sanctioned entities. The investigation has renewed political and regulatory scrutiny of Binance’s compliance practices.
