Media: US Justice Department probes use of Binance to evade Iran sanctions

The US Department of Justice is investigating Iran’s alleged use of the cryptocurrency exchange Binance to circumvent American sanctions, according to people familiar with the matter and company documents reviewed by the Wall Street Journal.

The inquiry follows the dismantling of an internal Binance investigation into more than $1 billion that reportedly flowed through the platform to a network funding Iran-backed militant groups. Officials have contacted individuals with knowledge of the transactions to request interviews and gather evidence, sources said.

It remains unclear whether the Justice Department is examining potential misconduct by Binance itself or focusing solely on customers who used the platform.

The probe places the world’s largest crypto exchange back under legal scrutiny. Its founder, Changpeng Zhao, known as CZ, received a pardon from Donald Trump in October.

In 2023, Binance pleaded guilty to violating US anti-money-laundering and sanctions laws. The company agreed to pay a $4.3 billion fine and operate under US oversight. Zhao also pleaded guilty to a related charge and served four months in prison.

Separately, a monitor appointed by the US Treasury Department to oversee Binance’s compliance programme has requested information about the Iranian-linked transactions, including details about a business partner that allegedly transmitted much of the money, according to people familiar with the requests.

Binance suspended employees conducting the internal review last November, shortly after they flagged $1.7 billion in transfers from Chinese clients into digital wallets allegedly used by Iran to finance its regional proxies, including Yemen’s Houthi militants. According to internal reports cited previously, more than $1 billion of that total was sent by Blessed Trust, a Hong Kong-based payments company.

By Sabina Mammadli