Key Takeaways
- • Binance internal investigators discovered approximately $1.7 billion in cryptocurrency flowed from two company accounts to Iranian entities linked to terrorist groups over a 12-month period in 2024, representing a potential violation of global sanctions.
- • One of the two accounts involved in the $1.7 billion transfer belonged to a Binance vendor; over 1,500 Iranian accounts gained access to the Binance platform during the same period.
- • Binance fired or suspended at least four employees involved in the investigation within weeks of their report to top executives, citing violations of company protocol related to client data handling, despite the company's 2023 plea agreement and commitment to strengthen compliance.
- • The investigation surfaced in the months preceding President Trump's pardon of Binance founder Changpeng Zhao, who had served four months in federal prison in 2024 for the firm's anti-money-laundering violations; Trump's family crypto venture, World Liberty Financial, maintains close business ties with Binance.
- • Senator Blumenthal opened a formal inquiry into the matter following the reporting, examining the $1.7 billion in Binance-linked cryptocurrency transfers to Iranian proxies and broader sanctions compliance risks in the crypto sector.
Summary
Binance's internal investigators uncovered a substantial sanctions violation in 2024 that the company subsequently attempted to suppress through employee terminations. According to internal company records and documents reviewed by The New York Times, approximately $1.7 billion in cryptocurrency flowed from two Binance accounts to Iranian entities with documented links to terrorist organizations over a 12-month period. One of these accounts belonged to a Binance vendor. Additionally, investigators found that more than 1,500 accounts registered to Iranian users had gained access to the Binance platform during the same timeframe, expanding the scope of potential compliance failures.
Following the investigators' formal report to senior executives, Binance responded by firing or suspending at least four employees involved in the investigation. The company justified the terminations by citing violations of company protocol related to the handling of client data, according to company documents and three people familiar with the situation. This sequence of events represents a significant departure from Binance's stated commitments made in November 2023, when the company pleaded guilty to violating U.S. anti-money-laundering rules, paid a $4.3 billion fine, and pledged to strengthen compliance. At that time, Binance announced it had hired more than 60 employees with law enforcement and regulatory experience to address compliance gaps.
The timing of these discoveries carries particular significance given that the Iranian transactions surfaced in the months preceding President Trump's pardon of Binance founder Changpeng Zhao in 2025. Zhao had served a four-month federal prison sentence in 2024 for his role in the firm's previous anti-money-laundering violations. The pardon occurred amid growing business ties between Binance and World Liberty Financial, a cryptocurrency venture associated with the Trump family, raising questions about the intersection of political favor and regulatory enforcement within the crypto industry.
Senator Richard Blumenthal has opened a formal inquiry into the matter, examining the $1.7 billion transfer and broader compliance risks related to Binance's handling of sanctioned jurisdictions. The investigation highlights persistent structural weaknesses in crypto exchange compliance systems despite significant financial penalties and leadership changes in the sector.
Following the investigators' formal report to senior executives, Binance responded by firing or suspending at least four employees involved in the investigation. The company justified the terminations by citing violations of company protocol related to the handling of client data, according to company documents and three people familiar with the situation. This sequence of events represents a significant departure from Binance's stated commitments made in November 2023, when the company pleaded guilty to violating U.S. anti-money-laundering rules, paid a $4.3 billion fine, and pledged to strengthen compliance. At that time, Binance announced it had hired more than 60 employees with law enforcement and regulatory experience to address compliance gaps.
The timing of these discoveries carries particular significance given that the Iranian transactions surfaced in the months preceding President Trump's pardon of Binance founder Changpeng Zhao in 2025. Zhao had served a four-month federal prison sentence in 2024 for his role in the firm's previous anti-money-laundering violations. The pardon occurred amid growing business ties between Binance and World Liberty Financial, a cryptocurrency venture associated with the Trump family, raising questions about the intersection of political favor and regulatory enforcement within the crypto industry.
Senator Richard Blumenthal has opened a formal inquiry into the matter, examining the $1.7 billion transfer and broader compliance risks related to Binance's handling of sanctioned jurisdictions. The investigation highlights persistent structural weaknesses in crypto exchange compliance systems despite significant financial penalties and leadership changes in the sector.
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