The U.S. Department of Justice is reportedly investigating whether Iran used the Binance Exchange to bypass American sanctions. According to reporting cited by officials, the probe centers on more than 1 billion dollars that allegedly flowed through the exchange to networks tied to Iran-backed groups.
Sources told the Wall Street Journal that Binance shut down an internal review into these transfers before it finished. That step reportedly drew the DOJ’s attention because the internal team had begun tracing funds linked to terrorist organizations and other sanctioned actors.
The investigation comes on top of political pressure from Capitol Hill. Senator Richard Blumenthal and other Democrats have already asked the Justice Department and Treasury to investigate similar allegations of Iran-linked activity on Binance.
Alleged Role of Binance Accounts and Partners
Reports by Fortune and the New York Times say Binance’s own compliance investigators found over $1 billion in Tether transactions from March 2024 to August 2025 that reached Iran-linked wallets via the Tron blockchain. These flows allegedly involved two Hong Kong-based partners, Hexa Whale and Blessed Trust, that helped move money for Iranian government entities and related groups.
Internal findings also pointed to transactions tied to the Islamic Revolutionary Guard Corps and Yemen’s Houthi movement, both designated terrorist organizations by the United States. In addition, investigators flagged that a “shadow fleet” of Russian oil tankers used Binance accounts to pay crew while trying to dodge Western sanctions on Moscow’s energy exports.
Lawmakers say Binance compliance staff who raised these concerns later faced suspension or firing. That pattern raised questions in Washington about whether the company put growth ahead of sanctions rules and its earlier promises to U.S. authorities.
Binance’s Response and What Comes Next
The most recent accusations have been vehemently refuted by Binance, which claims that media stories misrepresent its compliance with sanctions. The exchange stated in a written statement to Congress that new reports disregard advancements achieved following the 2023 settlement and are based on an incorrect interpretation of internal data.
The probe might take months as prosecutors examine records and speak with witnesses; the DOJ has not brought any additional charges. However, the exchange, which is already subject to stringent U.S. monitoring and a monitor, would be under more pressure if there were another significant case.
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