Richard Teng, CEO of Binance, has firmly rebutted allegations made by the Wall Street Journal that the cryptocurrency exchange was involved in facilitating digital transactions for Iranian parties under sanctions. The report alleged that these transactions amounted to $850 million, linked to Iranian financier Babak Zanjani, across two years. Teng argued the presentation of these events was inaccurate, especially concerning Binance’s reporting and compliance measures.
How did Binance address sanctions concerns?
Teng clarified that the purported transactions occurred prior to the imposition of official sanctions on the individuals involved. He highlighted that Binance’s compliance mechanisms had already detected these transactions before the Wall Street Journal began its inquiries. Audits of accounts associated with Zanjani revealed some shared technical hardware, yet most dealings adhered to regulatory standards.
With a team dedicated to compliance, Binance places significant emphasis on real-time monitoring and alerts about any suspicious activity. While the U.S. Department of Justice continues its scrutiny over Iran-related transactions, Binance commits to maintaining transparency with U.S. officials, as noted by Teng.
What legal steps is Binance taking?
In response, Binance has initiated a defamation suit against the Wall Street Journal, criticizing their portrayal of its compliance framework. Looking back, in 2023, Binance settled with U.S. authorities on charges related to money laundering and sanctions violations, agreeing to a $4.3 billion settlement and the introduction of external oversight. The latest enhancements in Binance’s compliance program have yielded a 96.8% reduction in transactions associated with sanctioned entities since January 2024.
Currently, Binance employs a compliance staff exceeding 1,500 members tasked with investigations, risk management, and regulatory alignment. Teng reaffirms Binance’s zero-tolerance approach to illicit financial conduct.
Glossary: Babak Zanjani is an Iranian businessman known for managing his country’s oil revenues abroad during international sanctions and facing multi-billion-dollar fraud accusations.
Investments in surveillance technologies and compliance enhancements enable Binance to respond to international law enforcement requests effectively. The firm focuses on identifying and recouping criminal gains, reinforcing its risk management framework.
Binance operates over 25 surveillance and audit systems to ensure robust monitoring of any interactions linked to sanctioned entities. This approach is supplemented by strict identity checks and location-based controls, as highlighted by Teng.
Before the Wall Street Journal report, Binance had already shared relevant audits with journalists. Teng criticizes the article’s narrative for distorting facts, affirming Binance’s adherence to legal and ethical compliance protocols.
Binance places high importance on anti-money-laundering efforts and collaboration with international regulatory bodies. The company advocates for transparency and integrity as core principles guiding its operations.
