U.S. Prosecutors Probe Binance Over Possible Iran Sanctions Breaches

U.S. federal prosecutors are investigating whether Binance allowed trading that violated sanctions on Iran, Bloomberg reported on September 22. The inquiry is being handled by the Manhattan U.S. attorney’s office, with the Justice Department’s criminal division also involved, according to people familiar with the matter.

Investigators are examining whether the exchange knowingly permitted the activity, Bloomberg reported. The Justice Department declined to comment to Reuters, which relayed the report; Binance said it has zero tolerance for sanctions violations and cooperates with law enforcement.

The report brings fresh attention to Binance’s controls for detecting and stopping transactions tied to sanctioned parties. It does not establish that the exchange broke the law in this reported inquiry, and prosecutors have not announced charges.

A separate civil case filed by the Justice Department on September 14 alleges that two Chinese companies used Binance accounts to launder proceeds from Iranian oil sales. Prosecutors are seeking to seize about $61 million in cryptocurrency; the complaint says the wider network moved more than $1.5 billion. Those claims remain allegations, and the case is distinct from the reported criminal investigation.

The new scrutiny follows Binance’s 2023 guilty plea to U.S. charges that included sanctions violations. The company agreed to pay about $4.3 billion and retain an independent compliance monitor for three years.

That earlier case included more than $898 million in trades between U.S. users and people ordinarily resident in Iran from 2018 to 2022, according to the Justice Department. The reported current inquiry centers on whether Binance knowingly allowed certain trading, but public reports have not specified its dates, volume or potential penalties.

For Binance, the immediate question is whether investigators will turn the inquiry into charges or another enforcement action. Any finding could also test whether the compliance changes tied to the 2023 settlement have addressed U.S. concerns.