U.S. Prosecutors Investigate Binance Over Possible Iran Sanctions Violations
Binance Faces New Sanctions Inquiry
U.S. federal prosecutors are investigating whether Binance, the world's largest cryptocurrency exchange, violated sanctions on Iran by failing to stop certain trading activities on its platform, Bloomberg reported Tuesday, citing people familiar with the matter.
The U.S. attorney's office in Manhattan is leading the investigation, according to the sources, who asked not to be identified. The Department of Justice's criminal division in Washington, D.C., is also involved.
What the Investigation Focuses On
Investigators are looking into whether Binance knowingly allowed trading to continue despite being aware that it violated sanctions laws, one source said. The probe centers on Binance's compliance efforts.
Binance's Response
“We maintain a zero-tolerance policy for sanctions violations,” a Binance spokesperson said by email. “We fully cooperate with law enforcement, and we remain committed to rooting out and shutting down bad actors.”
The Justice Department and the Manhattan attorney's office did not immediately respond to a request for comment.
Background and Previous Scrutiny
Binance has faced U.S. government scrutiny before. In 2023, it pleaded guilty to banking compliance violations and agreed to pay $4.3 billion in fines. Since then, the company has emphasized its cooperation with authorities. In February, Binance said more than 1,500 people, about 25% of its global workforce, worked on compliance.
In March, Binance filed a defamation lawsuit against Dow Jones, publisher of The Wall Street Journal, after the newspaper reported that the Justice Department was investigating whether Iran used the platform to move funds in violation of U.S. sanctions. Richard Teng, Binance's co-CEO, accused the newspaper of “inaccurate reporting about our compliance program.”
In April, The New York Times reported that Binance made it harder for law enforcement in several countries to obtain user information, complicating efforts to find scammers and combat money laundering.
In February, U.S. Senator Richard Blumenthal initiated a probe into alleged sanctions violations at Binance involving $1.7 billion. Binance said it found no evidence to support those allegations.
What Is Confirmed
Bloomberg reported the investigation, citing unnamed sources. Binance has confirmed it maintains a zero-tolerance policy for sanctions violations and cooperates with law enforcement. The Justice Department and Manhattan attorney's office have not commented.
What Is Still Unclear
The investigation is ongoing, and no charges or findings have been announced. Whether Binance actually violated sanctions has not been determined.
Why This Matters
Binance is the largest crypto exchange in the world. A formal investigation into potential sanctions violations could affect its operations and reputation, though the outcome is unknown.
What Happens Next
The investigation is still in progress. No timeline or next steps have been publicly announced.
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.