Binance Let $1.7B Flow Through Suspicious Accounts After Settlement

Binance allowed $1.7 billion in suspicious crypto flows through 13 flagged accounts, including $144 million after its 2023 plea deal, raising concerns over its compliance and oversight.

Leaked internal files reviewed by the Financial Times and other outlets reveal that Binance allowed $1.7 billion to move through 13 suspicious accounts, including $144 million after its $4.3 billion U.S. criminal settlement in 2023. Despite promising stricter compliance, these accounts exhibited red flags such as links to terror financing networks, impossible login patterns, frequent changes to banking details, and failed identity checks. One account registered to a Venezuelan resident moved $93 million, with some funds traced to networks accused of moving money for Iran and Hizbollah. Another account, tied to a 25-year-old Venezuelan woman, received over $177 million in crypto and cycled through nearly 500 bank accounts. Some wallets received funds from addresses later frozen for alleged ties to Hizbollah and Iran-backed groups. Binance stated it maintains strict compliance controls and investigates questionable flows, but the findings raise concerns about the effectiveness of its oversight and compliance practices, especially after the appointment of independent monitors in 2024.