US Justice Department examines Binance's potential role in Iranian sanctions circumvention: WSJ
Federal investigators are examining whether Binance facilitated Iran's efforts to bypass US sanctions, despite the cryptocurrency exchange's consistent denials of any misconduct.
Federal prosecutors are reportedly examining whether Binance played a role in helping Iran circumvent American economic sanctions.
According to a Wednesday report from the Wall Street Journal, the Department of Justice is examining whether the Islamic Republic utilized Binance to bypass US sanctions restrictions and whether financial transactions conducted through the platform facilitated the movement of money to networks associated with Iran-supported organizations, including the Houthi militant group in Yemen. The report referenced internal company documentation and individuals with direct knowledge of the situation.
According to the Wall Street Journal's reporting, it is not yet clear whether federal investigators are focusing their inquiry on Binance as a corporate entity, individual users of the platform, or both parties. The report indicated that government officials have reached out to individuals possessing information about the transactions in question to conduct interviews and collect evidence.
The investigation comes on the heels of previous reports revealing that Binance terminated an internal inquiry into approximately $1 billion in funds that moved through its platform to a financial network connected to Iranian proxy organizations.
At the time this article was published, the Department of Justice had not publicly confirmed the existence of the investigation. Binance had not provided an immediate response to Cointelegraph's outreach requesting commentary.
Democratic senators in the US Senate initiated their own investigation in February, while Binance has consistently maintained its position that it has committed no violations.
In 2023, Binance entered a guilty plea for violating federal anti-money-laundering regulations and sanctions legislation, resulting in a penalty of $4.3 billion and acceptance of monitoring by US regulatory authorities.
Changpeng "CZ" Zhao, who previously served as Binance's chief executive officer, entered a guilty plea to associated criminal charges and served a four-month prison sentence in 2024. President Donald Trump granted CZ a presidential pardon in October 2025.