Binance, the world's largest cryptocurrency exchange, finds itself once again at the center of controversy, facing serious allegations that threaten its efforts to rebuild its reputation with U.S. regulators. A recent report claims the exchange facilitated over $1 billion in transactions linked to Iran and subsequently removed internal staff who raised concerns, an accusation Binance vehemently denies.
Allegations of Sanctions Evasion and Internal Retaliation
The controversy stems from a detailed report by Fortune, which asserts that approximately $1 billion worth of Tether (USDT) moved through the Tron blockchain between March 2024 and August 2025. This network is frequently cited by regulators for its potential use in evading sanctions. Reportedly, Binance's internal investigators identified these transactions as connected to Iran. Alarmingly, the report suggests that instead of addressing these concerns, the investigators were removed from their roles, potentially weakening Binance's crucial compliance team responsible for monitoring illicit activity. These claims cast a shadow over Binance, particularly after its substantial $4.3 billion settlement with U.S. authorities, as it strives to present itself as a more responsible and compliant entity.
Binance's Strong Rebuttal and Counter-Claims
In a robust response, Binance and its co-CEO, Richard Teng, have unequivocally denied the allegations, refuting the narrative presented by Fortune. Teng asserted that no sanctions violations were discovered, and no investigators were dismissed for flagging concerns. Instead, Binance maintains that the employees in question were terminated for violating internal company policies, such as unauthorized data access. Binance's founder, CZ, further dismissed the report as "paid FUD" orchestrated by disgruntled former employees. While some in the crypto community have voiced support for Binance's firm stance against what they perceive as unfounded narratives based on anonymous sources, the situation highlights ongoing challenges in distinguishing genuine whistleblowing from complaints by former staff. Regardless of the truth behind the allegations, this high-stakes dispute underscores the intensifying scrutiny of cryptocurrency exchanges and their compliance with global sanctions, potentially prompting regulators to further tighten oversight of stablecoin and blockchain transaction flows.
