US Justice Department Investigates Iran’s Alleged Use of Binance to Evade Sanctions

The U.S. Justice Department has launched an investigation into Iran’s alleged use of the cryptocurrency exchange Binance to bypass U.S. sanctions and potentially finance groups linked to the Iranian Revolutionary Guard Corps (IRGC).

According to a report by The Wall Street Journal, the probe focuses on whether funds were transferred through the platform to support organizations connected to Iran, including Yemen’s Houthi militants.

The investigation is based on company documents and information from individuals familiar with the transactions. Authorities have reportedly contacted people with direct knowledge of the suspected activity to request interviews and gather evidence.

A compliance monitor appointed by the U.S. Treasury Department has also requested details from Binance about transactions linked to Iran. The request reportedly includes information about a business partner believed to be responsible for a large portion of the financial flows.

At this stage, it is unclear whether the investigation is examining possible misconduct by Binance itself or activities carried out by users on the platform.

A spokesperson for Binance told the Wall Street Journal that the company “categorically did not directly transact with any sanctioned entities.”

The investigation places Binance back under regulatory scrutiny in the United States. In 2023, the cryptocurrency exchange pleaded guilty to violating U.S. sanctions and banking laws, resulting in a record $4.3 billion penalty and the introduction of ongoing compliance oversight by U.S. authorities.

Under the terms of that agreement, Binance is required to screen customers for sanctions violations and terrorism financing risks and report suspicious activity to regulators.

The issue has also drawn attention from U.S. lawmakers. Senator Richard Blumenthal, a member of the Senate Homeland Security Committee, recently launched a congressional inquiry into Binance’s handling of Iranian-linked transactions.

Blumenthal raised concerns about reports suggesting that nearly $2 billion in funds may have flowed to sanctioned entities, questioning whether the company had met its legal obligations under U.S. sanctions rules.

Binance responded by stating that its compliance program meets high industry standards and described some media reports about the case as inaccurate.

The Justice Department’s investigation comes as the United States intensifies efforts to disrupt financial networks connected to Iran, particularly those involving cryptocurrency transactions used to move funds from international oil sales.

Earlier this year, the U.S. Treasury Department sanctioned two smaller crypto exchanges accused of transferring large amounts of digital assets to wallets linked to the IRGC.

Officials say monitoring cryptocurrency transactions has become a key part of enforcing sanctions as digital finance continues to grow globally.