Binance Faces Renewed Examination Over Compliance Concerns
The global leader in cryptocurrency exchanges, Binance, is once again under the microscope following an exclusive report by Fortune. This report raises serious questions about the exchange’s internal compliance mechanisms and its oversight of sanctions.
Investigation into Sanctions Violations
Multiple sources and internal documents indicate that Binance’s compliance team flagged transactions that suggest entities tied to Iran received over $1 billion via the platform from March 2024 to August 2025. These transactions allegedly involved the stablecoin Tether (USDT) on the Tron blockchain. If these allegations hold true, they could signify potential breaches of US sanctions laws.
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The report reveals that after internal investigators compiled and submitted their findings, at least five compliance team members were dismissed starting in late 2025. These individuals included veterans from law enforcement backgrounds in Europe and Asia, with at least three holding senior positions in special investigations and global financial crime inquiries at Binance.
Additionally, the report claims that over the past three months, at least four senior compliance officials have either resigned or been forced to leave. Those who spoke to Fortune did so anonymously, fearing possible legal consequences.
Expert Opinions on the Matter
Robert Appleton, a partner at the law firm Olshan Frome Wolosky and a former US Department of Justice leader in sanctions-related cases, expressed astonishment at the situation. “It’s quite surprising that this occurred under the oversight of Binance’s internal investigators,” Appleton told the magazine, alluding to the government-imposed monitorship on the company following previous enforcement actions.
Response from Former Binance CEO
The controversy emerges in the wake of Binance’s substantial legal settlement in 2023, where the exchange admitted to breaches of anti-money laundering (AML) and know-your-customer (KYC) protocols. As part of this settlement, co-founder Changpeng Zhao (CZ) stepped down as CEO, and Binance committed to government-imposed monitorships aimed at enhancing its compliance structure, marking what the company called a new era of “regulatory maturity.”
Zhao has dismissed the allegations presented in the recent report. While addressing the claims, he stated his lack of detailed knowledge on the matter but argued that the narrative seems implausible. Zhao suggested that if the allegations are indeed true, the investigators might have been dismissed for failing to prevent the alleged transactions.
Criticism of the Report
Zhao also questioned the efficacy of third-party anti-money laundering tools, akin to those utilized by law enforcement agencies, in identifying these transactions. Although no longer at the helm of Binance, Zhao emphasized that during his leadership, every transaction underwent scrutiny through multiple external AML monitoring systems.
He further criticized the reliance on anonymous sources, arguing that such accounts can be manipulated to create negative narratives, particularly if the individuals involved harbor grievances or ulterior motives.
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