New reports allege that approximately $850 million worth of cryptocurrency was clandestinely transferred via payment networks reportedly tied to Iran using the Binance platform. The Wall Street Journal has cited sources such as blockchain data, compliance documentation, and law enforcement inputs for these claims. These transactions, allegedly conducted through a singular Binance account, reportedly continued until early 2024, despite Binance’s strong denial of such activities.
Is there a network of illicit transfers?
Accusations focus on an Iranian businessman, Babak Zanjani, who is said to have created a network to process crypto transfers through Binance. This payment system allegedly saw nearly $850 million moved over two years, mainly before sanctions were activated. The transactions reportedly continued via intermediary accounts connected with over 1,500 Iran-affiliated entities.
Binance’s CEO Richard Teng has cleared the air on social media, labeling the claims as “fundamentally incorrect.” He noted that the activities mentioned took place prior to sanctions and emphasized the absence of direct platform access for Iranian users.
Richard Teng underlined, “No transactions involving sanctioned individuals have taken place on the Binance platform. The mentioned transactions occurred before official sanctions came into effect.”
Are Binance’s protocols vulnerable?
The allegations have brought Binance’s stringent compliance measures into question. The company maintains that the intricate structure of crypto networks—which includes decentralized and intermediary wallets—complicates monitoring and does not signify a direct service to forbidden users.
Official statements clarified that a significant proportion of these involved transaction volumes were not from direct trades on the platform itself, reiterating that previous investigations had not conclusively found Binance in violation.
Earlier lapses had cost Binance $4.3 billion in fines as part of a deal with US authorities due to deficiencies in anti-money laundering protocols, a scenario that led to a policy overhaul following CEO Changpeng Zhao’s resignation.
Documentation revealed by WSJ indicates Binance’s internal audits had previously pointed out questionable activities, suggesting that some accounts shared a link with Babak Zanjani. Conversely, Binance attributes any staff turnover to benign personal choices.
- The number of compliance officers at Binance increased to over 1,500 in 2025.
- Sanction-linked transaction rates plummeted to 0.009% in 2025 from 0.284% in 2024.
- Advanced technology facilitated a major drop in suspicious activities.
Following these events, Binance has focused on enhancing its monitoring capabilities with the intention of preemptively eliminating any possible illicit activities within its network, thereby restoring confidence among stakeholders and aligning with global regulatory standards.
