Binance Rejects Wall Street Journal Report, Denies Firing Staff Over Sanctions Probe

Binance pleaded guilty to the U.S. Department of Justice in 2023 to violating anti-money-laundering and sanctions rules and paid $4.3 billion in penalties. Founder Changpeng Zhao, known as CZ, also stepped down as CEO. The latest controversy over Iran-linked fund flows is therefore particularly sensitive, raising questions about whether Binance has fully completed its compliance overhaul and whether sanctioned entities can continue using its platform.

The New York Times reported on February 23, 2026, that investigators found about $1.7 billion flowing from two Binance accounts to Iran-linked entities between 2024 and 2025. At least four people involved in the investigation were subsequently suspended or dismissed. Binance denied that the actions were connected. On May 22, Richard Teng also rejected a separate Wall Street Journal claim involving $850 million in Iran-linked flows, while CZ publicly backed him.

Binance pleaded guilty in 2023 to violating anti-money-laundering and US sanctions rules, agreeing to a $4.3 billion settlement and subsequent reviews by two independent monitors for the US Department of Justice and the Financial Crimes Enforcement Network. Suspected fund flows to Iran’s Islamic Revolutionary Guard Corps, Yemen’s Houthi movement and Russia’s shadow fleet raise questions about whether Binance has honored its settlement commitments and whether US sanctions are effective.

Richard Blumenthal, the top Democrat on the US Senate Permanent Subcommittee on Investigations, sent Binance a letter on February 24, 2026, seeking records on sanctions controls, internal alerts and the dismissal of investigators. Reports said about $1.7 billion flowed to Iran-linked entities and that Iranians could access more than 1,500 accounts. Binance said its direct dealings with four Iranian exchanges totaled only $110,000 in 2025. The Justice Department opened an investigation in March.

Global cryptocurrency exchange Binance has strengthened sanctions compliance and transaction monitoring since 2024 to reduce the risk of sanctioned entities using its platform. Their share of transactions is an important measure of anti-money laundering and sanctions controls, directly affecting Binance’s regulatory standing and authorization to operate across markets.

Binance said in its latest report that the platform’s transaction exposure involving sanctioned entities has fallen 97% since 2024 and now accounts for just 0.009% of total trading volume. The company also rejected claims that it fired internal investigators, saying the employees left because they violated internal data-protection and confidentiality rules, not because of their investigative work.