Binance Vehemently Denies Allegations of Internal Retaliation Over $1.7 Billion Iran Sanctions Probe

Binance, the world’s largest cryptocurrency exchange, is facing serious accusations from foreign media outlets regarding alleged internal retaliation against investigators who uncovered substantial crypto flows to Iran-linked entities. Reports claim that these investigators were “purged” after identifying approximately $1.7 billion in cryptocurrency transactions. Binance has, however, issued a forceful rebuttal, strongly denying all related allegations.

Allegations Surface: $1.7 Billion Flow to Iran-Linked Entities

According to a Monday report by The New York Times, Binance’s internal compliance investigation team last year identified over 1,500 accounts that had logged in from Iran. Their probe allegedly traced around $1.7 billion in cryptocurrency from two Binance accounts to various Iran-related entities. Disturbingly, these transfers reportedly included wallet addresses with connections to the “Islamic Revolutionary Guard Corps (IRGC).”

The New York Times further highlighted that one of the implicated Binance accounts belonged to Blessed Trust, a Hong Kong-based payment company that previously operated as a fiat partner for Binance.

Leung Ka Kui, a director at Blessed Trust, contested these claims in an interview with The New York Times. He asserted that the company unequivocally did not “knowingly” facilitate transactions violating sanctions or make payments to Iranian entities. Leung clarified that Blessed Trust’s collaboration with Binance was strictly limited to routine operational expenses, such as bill settlements and payroll processing.

Internal Investigators Allegedly Silenced

The controversy deepened with claims of internal suppression. The New York Times report detailed that two Binance internal investigators raised concerns about Blessed Trust’s alleged involvement in Iranian transactions last autumn. These concerns were escalated through various management levels, eventually reaching Binance CEO Richard Teng and Chief Compliance Officer Noah Perlman.

However, by November, both investigators were reportedly suspended. Binance then assigned two different individuals to take over the probe, but within days, these new investigators were also suspended and had their access to Binance’s internal systems revoked.

The Wall Street Journal Adds to the Claims

Concurrently, The Wall Street Journal unveiled additional findings, stating that internal investigations also targeted Hexa Whale Trading, another Hong Kong company. This firm was accused of channeling approximately $500 million in USDT into the same Iran-linked financial network.

Internal documents cited by both major media outlets reportedly suggest that investigators concluded these funds ultimately supported Iranian-backed armed groups, including Yemen’s Houthi organization.

The reports further alleged that internal personnel involved in the investigation faced suspension or dismissal after reporting their findings to senior management in 2025. The Wall Street Journal’s sources indicated that Binance disbanded the investigation team within weeks of Changpeng Zhao (CZ) receiving a pardon from US President Donald Trump last October. The New York Times, meanwhile, stated that at least four investigators were disciplined shortly after reporting Iran-related transactions, citing “improper handling of confidential customer data” as the reason.

Binance’s Strong Rebuttal: No Sanctions Breach, Controls Are Working

In response to the mounting accusations, a Binance spokesperson issued a statement to The Block on Tuesday, vehemently refuting claims that any investigators were fired for uncovering compliance issues or potential sanctions violations.

“We strongly object to the claims in recent reports,” the Binance spokesperson stated. “Binance has not violated sanctions laws in relation to the transactions mentioned, and our internal review has found no evidence of any wrongdoing.”

“In fact, Binance proactively detected and reported suspicious activity, which proves that our control mechanisms are working effectively, rather than being mere facades.”

To further counter the external scrutiny, Binance provided specific data. In an official post on social media platform X, the exchange highlighted a significant reduction in its direct exposure to four major Iranian cryptocurrency exchanges. From January 2024 to January 2026, this exposure plummeted from $4.19 million to a mere $0.11 million, marking a substantial decrease of 97.3%.

Binance founder Changpeng Zhao (CZ) also took to X to voice his support, asserting that some media outlets “repeatedly quote negative remarks from dismissed employees.” He emphasized that Binance boasts “the industry’s most comprehensive compliance system.”