Binance faces a fresh U.S. Department of Justice investigation into whether it violated Iran sanctions by failing to stop certain trading on its platform. The probe follows a September 14 civil forfeiture case tied to more than $61 million in alleged Iranian oil proceeds, and Binance says it maintains zero tolerance for sanctions violations.
Federal prosecutors are examining whether Binance violated U.S. sanctions on Iran by not stopping certain trading on its platform, according to a Bloomberg News report on September 22. The Attorney's Office for the Southern District of New York is leading the probe, with the DOJ's Criminal Division in Washington, D.C. also involved.
New Criminal Probe Follows a $61 Million Forfeiture Case
The investigation comes after a civil forfeiture action filed September 14 that seeks more than $61 million in USDT tied to black-market Iranian oil sales. Prosecutors say the funds moved in part through Binance accounts used by two Chinese firms, Blessed Trust and Hexa Whale, and were intended to finance Iran's IRGC.
Prosecutors did not name Binance as a defendant or accuse the exchange of wrongdoing in that forfeiture complaint. But the case has drawn wider attention: investigators identified a network of crypto addresses that allegedly received and distributed more than $1.5 billion from illicit Iranian oil sales, and the new criminal probe is now examining Binance's own compliance practices.
Teng Says Binance Has Zero Tolerance for Violations
Co-CEO Richard Teng rejected claims that Binance knowingly allowed sanctions violations, saying the exchange investigates, restricts or freezes accounts where appropriate, offboards users, and reports to authorities. According to CoinGape: "We did not permit any transactions with sanctioned individuals."
Binance also said it fully cooperates with law enforcement and remains committed to rooting out bad actors. The company has not been charged, and whether charges follow will depend on the evidence prosecutors gather.
A Familiar Playbook Since the 2023 Settlement
The scrutiny echoes Binance's 2023 case, when the exchange pleaded guilty to violating anti-money laundering and sanctions laws and agreed to pay about $4.3 billion. Founder Changpeng "CZ" Zhao pleaded guilty separately, stepped down as CEO, and served four months in prison.
Since then, the company says it has strengthened security and compliance coordination with government authorities at the cryptocurrency exchange.
Sources: CoinGape, Coinpedia Fintech News
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