U.S. prosecutors are investigating whether Binance knowingly allowed activity on its platform that could have circumvented sanctions against Iran, Bloomberg reported Tuesday, citing people familiar with the matter.
The investigation is being led by the U.S. Attorney’s Office in Manhattan and centers on Binance’s handling of Iran-related trading activity. Prosecutors are examining whether the exchange failed to prevent certain transactions that may have violated U.S. sanctions, according to the sources, who spoke on condition of anonymity.
The Justice Department’s criminal division in Washington, D.C., is participating in the inquiry. One source said investigators are looking into whether Binance continued to facilitate trading after becoming aware that the activity could violate U.S. sanctions laws.
Binance said it has a strict policy against sanctions violations and cooperates with authorities.
“We maintain a zero-tolerance policy for sanctions violations,” a company spokesperson said by email. “We fully cooperate with law enforcement, and we remain committed to rooting out and shutting down bad actors.”
The Justice Department and the Manhattan U.S. Attorney’s Office had not immediately responded to CoinDesk’s requests for comment.
The latest inquiry follows years of scrutiny of Binance by U.S. authorities. In 2023, the exchange pleaded guilty to banking compliance violations and agreed to pay $4.3 billion in fines.
Binance has since pointed to expanded compliance operations and closer cooperation with regulators and law enforcement. In February, the company said more than 1,500 employees, accounting for around 25% of its global workforce, were dedicated to compliance.
The exchange also filed a defamation lawsuit against Dow Jones in March after The Wall Street Journal reported that the Justice Department was examining whether Iran had used Binance to move money in violation of U.S. sanctions.
Richard Teng, Binance’s co-CEO, rejected the report at the time, alleging that the Wall Street Journal had published “inaccurate reporting about our compliance program.”
The New York Times reported in April that Binance had tightened procedures for law enforcement officials seeking user data in several countries. According to the report, the changes could make it more difficult for authorities to identify scammers and investigate money-laundering activity.
Binance has repeatedly stated that it has never allowed transactions involving sanctioned individuals and has maintained that it will continue cooperating with authorities.
Separately, Senator Richard Blumenthal, a Democrat on the Senate Homeland Security Committee, launched a probe in February into allegations of approximately $1.7 billion in sanctions violations involving Binance. The exchange denied the allegations and said it found no evidence to substantiate them.
