U.S. federal prosecutors are investigating whether Binance failed to prevent trading that violated sanctions on Iran, expanding scrutiny of the exchange’s compliance controls nearly three yea
U.S. federal prosecutors are investigating whether Binance failed to prevent trading that violated sanctions on Iran, expanding scrutiny of the exchange’s compliance controls nearly three years after its $4.3 billion criminal resolution with the Justice Department.
The investigation is being handled by the Manhattan U.S. Attorney’s Office, with the Justice Department’s Criminal Division in Washington also involved. Authorities are examining whether Binance knowingly permitted the activity, Bloomberg reported, citing people familiar with the matter.
The latest disclosure provides additional detail on a DOJ probe that emerged in March, when questions remained over whether investigators were examining Binance itself, individual customers or both.
Binance said it maintains a zero-tolerance policy toward sanctions violations and fully cooperates with law enforcement. The exchange said it remains committed to identifying and removing bad actors from its platform.
The investigation follows months of disputes over Iran-linked activity. Binance formally rejected allegations earlier this year that its sanctions controls were inadequate, saying users residing or located in Iran are prohibited from the platform and identity verification is mandatory.
Its response focused partly on Hexa Whale and Blessed Trust, two entities that had been linked to transactions with possible Iranian exposure. Binance said both were investigated after law-enforcement inquiries and subsequently removed from the exchange, with Hexa Whale offboarded in August 2025 and Blessed Trust in January 2026.
The exchange also said its exposure to major Iranian crypto platforms fell 97.3% between early 2024 and mid-2025 as it expanded sanctions screening, geolocation controls and transaction monitoring.
Binance pleaded guilty in November 2023 to violations including the Bank Secrecy Act and the International Emergency Economic Powers Act. The company agreed to pay $4.3 billion in penalties and retain an independent compliance monitor while strengthening its anti-money laundering and sanctions systems.
The Justice Department said Binance had previously failed to prevent U.S. users from trading with customers in sanctioned jurisdictions, including Iran. Between January 2018 and May 2022, more than $898 million in trades occurred between U.S. users and users ordinarily resident in Iran.
Fresh scrutiny intensified this month after Manhattan prosecutors sought forfeiture of $61.2 million in USDT allegedly derived from sanctioned Iranian oil sales. The September 14 civil complaint describes Binance accounts used by entities accused of converting and moving proceeds through a broader network tied to Iranian petroleum transactions.
The current investigation has not produced announced charges against Binance. Prosecutors are examining whether the exchange’s post-settlement controls prevented prohibited Iran-linked activity as required under its strengthened compliance framework.
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