Treasury Department Allegedly Issued Private Compliance Warning to Binance: Sources
Questions surrounding Binance's purported connections to entities associated with Iran have resurfaced following reports that US Treasury Department officials delivered a message to the cryptocurrency exchange concerning its compliance with a 2023 settlement agreement that mandates ongoing monitoring.
Update (May 7 at 9:47 PM UTC): Additional information from Binance has been incorporated into this article.
Officials at the US Department of the Treasury allegedly insisted that Binance adhere to a monitoring framework established through a 2023 agreement between government authorities and the digital currency exchange, in the wake of allegations that the platform processed approximately $1 billion in transactions connected to Iranian-linked entities.
A Thursday publication by The Information revealed that the Treasury Department issued what sources described as a private demand for Binance to maintain compliance with a monitoring initiative that the exchange committed to as part of a 2023 agreement with US government agencies. This arrangement, which featured a $4.3 billion financial settlement with both the Treasury and the US Department of Justice, mandated that Binance participate in a monitoring program spanning three years and supervised by government representatives.
The alleged correspondence from the Treasury Department came on the heels of reports suggesting that Binance terminated employees who were responsible for informing the exchange's leadership that approximately $1 billion in transactions had been processed through the platform involving entities with connections to Iran. Subsequently, a coalition of senators took action, calling upon Treasury Secretary Scott Bessent to provide information regarding Binance's compliance with the settlement reached in 2023.
"Binance is committed to cooperating with the independent monitor and our ongoing collaboration with relevant agencies," a spokesperson for the exchange told Cointelegraph in response to the report. The spokesperson said:
"We welcome constructive feedback from the Treasury and view this oversight as an important part of continuously strengthening our compliance and anti-money laundering controls. We are providing the monitor with full cooperation and transparency."
The relationship between Binance and the Trump administration has faced increased examination following a $2 billion investment in the cryptocurrency exchange by an entity based in the United Arab Emirates, which utilized the USD1 stablecoin produced by World Liberty Financial, a venture co-founded by US President Donald Trump alongside his sons. Additionally, President Trump granted a pardon to former Binance CEO Changpeng Zhao in October 2025.
As part of the 2023 settlement arrangement, Zhao entered a guilty plea to a single felony charge associated with his failure to establish an adequate anti-money laundering program at Binance.
Zhao rules out leading another crypto company
The publication of The Information's report aligned temporally with Zhao's public appearance at the Consensus conference taking place in Miami on Thursday.
The former chief executive officer acknowledged that he had been making efforts to stay away from the United States but mentioned the possibility of reviving Binance.US as a means of providing users with access to worldwide liquidity. However, he rejected any notion of assuming a leadership position at another cryptocurrency enterprise, having stepped down from his role as Binance CEO in November 2023.
"I don't think I've got the stamina to run another startup, to lead another company," said Zhao. "I'm a one-trick pony. I'm okay with that level. I'm done."