Key Takeaways Federal authorities are examining whether Binance facilitated transactions that breached U.S. sanctions against Iran The probe is spearheaded by the Manhattan U.S. Attorney’s Of
Federal prosecutors have launched an investigation into whether Binance, the world’s most prominent cryptocurrency exchange platform, deliberately permitted trading activities that contravened U.S. sanctions targeting Iran. The investigation was first disclosed by Bloomberg on September 22, marking a significant development nearly three years following the exchange’s $4.3 billion federal resolution in 2023.
Breaking: U.S. Prosecutors Probe Binance Over Possible Iran Sanctions Violations
U.S. 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, Bloomberg… pic.twitter.com/P1VBmC1Jfu
— Wu Blockchain (@WuBlockchain) September 22, 2026
The investigation is being spearheaded by the U.S. Attorney’s Office for the Southern District of New York in Manhattan. Additional support is being provided by the Criminal Division of the Justice Department based in Washington. Authorities are scrutinizing the exchange’s internal oversight mechanisms and whether company officials had knowledge of the questionable transactions.
The exchange issued an immediate public statement addressing the matter. Company representatives emphasized their strict enforcement policy regarding sanctions compliance and confirmed ongoing cooperation with federal investigators.
In a related development, federal authorities filed a civil forfeiture action on September 14 that provides additional context to the Iran-related accusations. The Southern District of New York submitted the complaint seeking control of roughly $61 million in USDT distributed across 10 distinct cryptocurrency wallets.
According to federal prosecutors, the digital assets originated from unauthorized Iranian crude oil and petroleum transactions on the black market. The proceeds were allegedly earmarked to support Iranian governmental and military operations, including funding for the Islamic Revolutionary Guard Corps.
The legal filing identifies two Chinese corporate entities: Blessed Trust and Hexa Whale. Federal authorities claim both organizations maintained active trading accounts on Binance while processing revenues connected to Iranian petroleum commerce.
The civil forfeiture action does not formally charge Binance with criminal conduct. The government’s complaint specifically targets the digital currency contained in identified wallets rather than the exchange platform itself.
Federal prosecutors assert that an extensive network of cryptocurrency intermediaries processed more than $1.5 billion in unlawful oil revenues. Blessed Trust and Hexa Whale purportedly exploited American financial infrastructure to transfer or collect tens of millions in proceeds.
The digital holdings are identified as USDT operating on the TRON blockchain. According to the filing, Tether would destroy the tokens pursuant to a seizure order and create replacement tokens for government possession.
Binance released its own narrative explaining its handling of the two Chinese companies. The platform stated that law enforcement agencies made contact in April 2025 regarding transactions potentially connected to terrorism funding. The exchange delivered documentation for Hexa Whale in June 2025 and terminated the account on August 13, 2025.
According to Binance, Blessed Trust was removed from the platform in January 2026 following an internal funds origin investigation. The company asserts it discovered no indication that any account on its platform engaged in direct transactions with entities based in Iran.
The exchange’s internal analysis determined that approximately $126.1 million ultimately transferred to Iran-linked wallets after numerous blockchain transfers. Within that total, up to $24.1 million reportedly reached wallets associated with the IRGC.
The platform highlights its substantial compliance infrastructure in its defense. Binance reports employing over 1,500 compliance specialists, representing roughly 25% of its total global staff. The company handled more than 71,000 requests from law enforcement agencies throughout 2025.
This investigation follows Binance’s November 2023 guilty plea to violations of the Bank Secrecy Act and breaches of the International Emergency Economic Powers Act. That resolution mandated the appointment of an independent compliance monitor for a three-year period.
The civil forfeiture proceeding in the Southern District of New York continues to move forward. All accusations remain legally unsubstantiated pending a judicial determination in favor of the government.
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