Federal Prosecutors Probing Binance Over Alleged Iran Sanctions Violations
What is happening
Federal prosecutors, including the U.S. Department of Justice, are investigating whether Binance allowed Iran to evade U.S. sanctions by using its cryptocurrency exchange platform, according to a report from Bloomberg.
The DOJ said last week it is seizing and seeking to forfeit $61 million in cryptocurrency it alleges came from black-market sales of sanctioned Iranian oil. The DOJ says those funds were laundered through Binance by Chinese entities.
Key points
- Binance, the world's largest cryptocurrency exchange, is under investigation for allegedly allowing Iran-linked entities to trade on its platform.
- The DOJ is pursuing $61 million in cryptocurrency tied to sanctioned Iranian oil sales.
- Iran has been using bitcoin and other cryptocurrencies to work around U.S. sanctions.
- Treasury Secretary Scott Bessent confirmed the U.S. began targeting crypto wallets tied to the Iranian regime in April.
What the U.S. government has said
Treasury Secretary Scott Bessent said the Iranian regime's cryptocurrency holdings have been frozen, mostly in the form of Tether's USDT stablecoin — a type of digital token designed to maintain a stable value tied to the U.S. dollar. In April, the U.S. began targeting crypto wallets linked to the Iranian regime.
The Treasury also designated BitBank, an Iranian cryptocurrency exchange, as part of Operation Economic Outcast, the Trump Administration's broad economic campaign against Iran and its supporters.
Iran's use of cryptocurrency
According to the Financial Times, Iran has been using bitcoin to settle cross-border transactions through Iranian cryptocurrency exchanges after the country's central bank advised citizens to take any steps necessary to support the economy. Earlier this year, Iran launched a bitcoin-backed insurance service for its shipping companies, partly because bitcoin cannot be frozen the way other assets can be.
Binance's history with U.S. authorities
Binance, which has no physical headquarters but is incorporated in the Cayman Islands, previously ran into legal trouble with U.S. authorities after allegedly allowing funds connected to theft and terrorism to flow through its exchange without detection. The exchange left the U.S. market and agreed to pay $4.3 billion. Its founder and CEO, Changpeng Zhao, stepped down after pleading guilty to anti-money laundering violations but was later pardoned by President Trump.
Why this matters
The investigation highlights the ongoing tension between cryptocurrency platforms and U.S. sanctions enforcement. As Iran turns to digital assets to bypass traditional financial restrictions, regulators are increasing scrutiny of exchanges that may facilitate those transactions.
What is still unclear
The investigation is ongoing, and the Bloomberg report is based on people familiar with the matter. It has not been confirmed whether any specific violations have been established.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.