Global cryptocurrency giant Binance has officially initiated defamation proceedings against The Wall Street Journal. The lawsuit stems from a contentious report published by the newspaper in February, which alleged that approximately $1.7 billion in funds flowed through Binance to Iranian terrorist organizations and further claimed that the exchange dismissed employees who brought these concerns to light.
Filed on March 11 in the U.S. District Court for the Southern District of New York, Binance asserts that The Wall Street Journal’s February 23 article contained “false and defamatory statements” concerning the company’s robust compliance framework and its handling of cryptocurrency transactions potentially linked to Iran.
The Core Allegations
The Wall Street Journal’s controversial piece detailed that internal Binance investigators allegedly traced a series of transactions, purportedly revealing several entities, including a Hong Kong trading firm, transferring hundreds of millions in stablecoins on behalf of Iranian-affiliated organizations. The report further suggested that these investigators were subsequently suspended or terminated after notifying senior management, leading to the eventual disbandment of the investigative team.
Binance’s Strong Rebuttal
Binance vehemently refutes these assertions. In its legal complaint, the exchange underscores that it has never dismissed employees for raising legitimate compliance concerns. Instead, Binance clarifies that the personnel changes cited in the report were a direct consequence of individuals violating the company’s internal “data protection policy.” These actions, Binance maintains, were purely disciplinary measures for misconduct, not the “retribution” or malicious retaliation portrayed by the media.
A spokesperson for Binance reiterated this stance to Blockcast:
Binance explicitly denies ever halting or dismantling any compliance investigations. The Wall Street Journal continues to report the same false content. Based on this, we have filed a defamation lawsuit against The Wall Street Journal.
Unwavering Commitment to Compliance
The spokesperson further elaborated that Binance’s internal investigative efforts remained uninterrupted. These ongoing investigations, they stated, successfully uncovered a highly complex network of financial activities spanning multiple jurisdictions across Asia, the Middle East, and other regions. Binance meticulously analyzed these intricate fund flows, subsequently terminated the associated user accounts, and reported the findings to relevant law enforcement agencies.
This lawsuit signifies a significant escalation in the ongoing dispute between Binance and The Wall Street Journal regarding alleged Iranian cryptocurrency flows. Binance had previously issued clarifications in February when the initial report emerged, emphasizing its commitment to compliance and refuting claims of employee firings related to investigations.
New Developments: DOJ Investigation Claims
Intriguingly, on the very day Binance filed its substantial defamation suit, The Wall Street Journal published another report. This new article claimed that the U.S. Department of Justice (DOJ) is actively investigating whether Iran utilized Binance to circumvent international sanctions. In response to this, Binance stated it had no prior knowledge of such an investigation:
We are not aware of any such investigation. However, as always, we will continue to cooperate with regulators and law enforcement to ascertain the facts.
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