Binance Under Fire Again: New Allegations of Sanctions Evasion
Binance, the world's largest cryptocurrency exchange, finds itself embroiled in yet another compliance controversy. Despite facing a monumental $4 billion fine and the imprisonment of its founder, Changpeng Zhao (CZ), in 2024 for similar issues, new reports suggest the platform may have once again facilitated large-scale transactions with sanctioned entities, raising serious questions about the effectiveness of its compliance protocols.
Allegations of Iranian Transactions and Internal Discord
According to a report by Fortune, Binance allegedly fired internal investigators who uncovered evidence of over $1 billion in transactions linked to sanctioned Iranian entities in 2025. This development is particularly concerning given the ongoing independent compliance monitoring imposed by the Department of Justice (DoJ) following Binance's 2023 plea deal, which is set to last until 2027. Both CZ and current CEO Richard Teng have strongly denied the claims, with CZ labeling them 'paid FUD' or the work of a disgruntled former employee, while Teng dismissed the report as 'irresponsible' but acknowledged that compliance remains a "never-ending effort" against increasingly sophisticated bad actors.
Broader Context: Iran's Crypto Boom and US Scrutiny
The allegations against Binance emerge against a backdrop of surging cryptocurrency activity within Iran, primarily driven by geopolitical tensions and local unrest, leading both citizens and the government to circumvent international sanctions. Blockchain security firm TRM Labs reported that Iran received over $10 billion in crypto in 2025, with a significant portion – half of that total – reportedly linked to the Islamic Revolutionary Guard Corps (IRGC). This substantial use of crypto for sanctions evasion has drawn intense scrutiny from the U.S. Treasury, which remains deeply concerned about the flow of funds to sanctioned entities. The apparent failure to prevent such large transfers on Binance, despite heightened monitoring, underscores the persistent challenges in enforcing global financial integrity within the crypto space.
