Binance Denies $1.7 Billion Iran-Linked Crypto Flow Reports
- Reports say investigators traced $1.7B in flows to Iran-linked entities and IRGC-tied wallets.
- Reports cite 1,500+ Iran-accessed accounts and USDT transfers via Hong Kong entities.
- Binance denies violations and firings while citing Iran exchange exposure since 2024.
Binance has rejected reports that internal investigators uncovered $1.7 billion in cryptocurrency flows to Iranian-linked entities and later faced dismissal. The New York Times and Wall Street Journal reported that investigators traced funds to accounts linked to Iran’s Islamic Revolutionary Guards Corps and other Iran-backed groups. Binance denied violating sanctions laws and said no employee faced dismissal for raising compliance concerns.
Internal Probe and Alleged Iran Links
According to the New York Times, Binance investigators discovered last year that more than 1,500 accounts had been accessed from Iran. They also found that roughly $1.7 billion moved from two Binance accounts to Iran-linked entities.
The report stated that one of the accounts belonged to Blessed Trust, a Hong Kong payments firm that acted as a fiat partner for Binance. Investigators presented their findings to CEO Richard Teng and Chief Compliance Officer Noah Perlman.
Leung Ka Kui, a director of Blessed Trust, told the New York Times that the company did not knowingly facilitate sanctions-breaching transactions. He said its work with Binance involved routine disbursements such as invoices and payroll. Blessed Trust did not provide further comment.
Meanwhile, the Wall Street Journal reported that another Hong Kong entity, Hexa Whale Trading, moved roughly $500 million in USDT to the same Iranian network. Both publications cited documents stating that the funds supported Iran-backed groups, including Yemen’s Houthis.
Investigators reportedly concluded that the transactions were connected to entities tied to Iran’s Islamic Revolutionary Guard Corps. The publications cited internal documents to support their accounts.
Disciplinary Actions and Executive Changes
Reports claim that Binance suspended or fired investigators involved in the probe in 2025 after they presented their findings. The Wall Street Journal reported that executives dismantled the probe weeks after Zhao received a U.S. presidential pardon in October.
The NYT stated that at least four investigators faced discipline for alleged mishandling of confidential client data shortly after they reported the Iran-linked transactions. Both outlets cited internal documents and unnamed sources.
Several senior compliance officials have exited in recent months. The exchange has searched for a successor to Chief Compliance Officer Noah Perlman, who is expected to depart later this year.
The reports surfaced after Zhao founded Binance in 2017 and built it into the world’s largest cryptocurrency exchange. In 2023, Zhao pleaded guilty to money laundering, resigned, and received a four-month prison sentence. He also agreed to pay a $50 million fine and accepted a ban from involvement in the business.
Related: Binance Founder CZ Meets Trump Allies as USD1 Push Expands
Binance Response and Broader Context
In a statement to the Guardian, a Binance spokesperson said the company “did not violate sanctions laws in respect of the transactions described.” The spokesperson also denied that internal investigators lost their jobs for raising compliance concerns.
“No investigator was dismissed for raising compliance concerns or for reporting potential sanctions issues,” the statement said. Binance also addressed the issue on X, citing reduced exposure to Iranian entities.
The exchange stated that it reduced direct exposure to the four largest Iranian crypto exchanges by more than 97.3% between January 2024 and January 2026. Exposure reportedly fell from $4.19 million to about $0.11 million.
“Public blockchains are permissionless. Anyone can send assets to an exchange deposit address. Exposure cannot be reduced to zero,” Binance wrote on X. Zhao also posted that media reports repeated “negative narratives” from fired employees and claimed Binance has the “best compliance program in the industry.”
In 2023, Binance pleaded guilty and agreed to internal monitoring along with a criminal fine of nearly $1.81 billion and a $2.51 billion forfeiture order to settle three charges. The company also pledged to pursue bad actors, including customers from Iran.
