U.S. prosecutors are investigating Binance over possible Iran sanctions violations involving trading activity on its platform. The transactions remain unidentified, while authorities examine
Federal prosecutors are investigating whether Binance, the world’s largest crypto exchange, violated U.S. sanctions on Iran by knowingly allowing certain transactions to proceed on its platform. The probe is being led by the Manhattan U.S. Attorney’s Office, with the DOJ’s criminal division in Washington also involved.
In addition, the specific transactions under scrutiny have not been publicly identified. What is clear is that authorities are examining Binance’s compliance controls and whether the exchange was aware of the trading activity in question.
In 2023, the exchange pleaded guilty to willful Bank Secrecy Act violations, operating an unlicensed money transmitting business, and IEEPA sanctions violations tied to approximately $898 million in U.S.-Iran trades between 2018 and May 2022.
Furthermore, the settlement cost $4.3 billion, triggered a three-year independent compliance monitor, and saw then-CEO Changpeng Zhao step down, plead guilty personally, and serve a four-month prison term alongside a $50 million personal fine.
But the 2023 agreement only covered the specific conduct described in its Statement of Facts. Also, it explicitly does not protect Binance against prosecution for other conduct, whether previously disclosed or not.
If the current probe involves activity that occurred after the resolution, reflects different facts, or suggests a failure to meet monitorship terms, new charges are legally possible. Double jeopardy does not apply to distinct or later offences. Moreover, civil penalties from OFAC or FinCEN also remain on the table if settlement terms were breached.
The investigation adds detail to scrutiny dating back at least to March, when the DOJ was examining whether Iran used Binance to evade U.S. sanctions. At that time, it was unclear whether the probe targeted the exchange itself, its users, or both.
The U.S. prosecutors have taken multiple Iran-related enforcement actions in recent months as the U.S.-Israel conflict with Iran continues. Last week, federal prosecutors in Manhattan sought forfeiture of $61 million allegedly generated from Iranian black-market oil sales and laundered through Binance, without accusing Binance of wrongdoing in that specific action.
Since the 2023 settlement, Binance has grown its compliance headcount to more than 1,500 people, roughly 25% of its global workforce. Whether that’s enough to satisfy prosecutors is the question the market is now watching.
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