Key Takeaways
- • Babak Zanjani, a sanctioned Iranian businessman described as an "antisanction operator," moved $850 million through Binance until December 2025, with his primary account remaining active as recently as January 2026, according to internal Binance compliance reports reviewed by The Wall Street Journal.
- • A separate network may have channeled an additional $1.7 billion through Binance to Iranian entities, with experts estimating approximately $425 million (roughly half of Zanjani's transactions) potentially directed to fund Iran's military forces and the Islamic Revolutionary Guard Corps–Quds Force (IRGC-QF).
- • Binance's own internal investigators assessed the accounts constituted a money-laundering network designed to finance the Iranian regime, yet the exchange did not immediately suspend Zanjani's primary account despite flagging the activity—a compliance failure that occurred 15 months after initial detection.
- • Binance previously pleaded guilty to violating Iran sanctions and its former CEO Changpeng Zhao received a jail sentence, yet the platform reportedly continued to process transactions linked to Iranian military financing well into 2026, suggesting systemic enforcement gaps.
- • Democratic Senator Richard Blumenthal has launched a formal probe into potential sanctions violations based on Binance's own internal compliance findings; Binance has simultaneously sued The Wall Street Journal for defamation over related reporting.
Summary
Iran maintained a sophisticated money-laundering operation through Binance, the world's largest cryptocurrency exchange, funneling billions of dollars to fund military operations despite the platform's prior sanctions violations and enforcement commitments. According to internal Binance compliance reports obtained by The Wall Street Journal, Iranian businessman Babak Zanjani—who explicitly identifies himself as an "antisanction operator"—executed $850 million in transactions on the platform through December 2025. Critically, Zanjani's main account remained operational for approximately 15 months after Binance flagged the activity and continued functioning through January 2026, indicating a significant compliance monitoring failure.
The scope of illicit Iranian fundraising through Binance extends substantially beyond Zanjani's individual activity. A broader network associated with Iranian interests moved an estimated $1.7 billion through the exchange, with financial experts assessing that approximately $425 million—nearly half of the identified flow—was specifically routed to finance Iran's military and the Islamic Revolutionary Guard Corps–Quds Force (IRGC-QF). Binance's internal investigators concluded that the accounts constituted an organized money-laundering network explicitly designed to finance the Iranian regime, as documented in compliance reports reviewed by the Journal.
Binance's response to these disclosures has been defensive and internally contradictory. The company stated that "the overwhelming majority of these transactions have nothing to do with the Binance platform" while simultaneously declining to address specific transaction details. A company spokesperson asserted that Binance prohibits transactions with sanctioned individuals or wallets and claims appropriate action was taken upon discovering sanctioned accounts—statements that directly conflict with evidence that Zanjani's account operated openly for 15 months post-detection. The enforcement gap is particularly acute given Binance's prior history: the exchange pleaded guilty to violating Iran sanctions, and its former CEO Changpeng Zhao served a jail sentence for related violations, making continued Iranian military financing on the platform a striking compliance regression.
The revelations have triggered formal regulatory scrutiny. Democratic Senator Richard Blumenthal opened an investigation into potential sanctions violations based on Binance's own internal compliance findings. In a counter-maneuver, Binance filed a defamation lawsuit against The Wall Street Journal earlier in 2026 over previous reporting on alleged Iran-linked money laundering, a legal strategy that appears designed to suppress further investigative disclosure rather than address substantive compliance failures.
The scope of illicit Iranian fundraising through Binance extends substantially beyond Zanjani's individual activity. A broader network associated with Iranian interests moved an estimated $1.7 billion through the exchange, with financial experts assessing that approximately $425 million—nearly half of the identified flow—was specifically routed to finance Iran's military and the Islamic Revolutionary Guard Corps–Quds Force (IRGC-QF). Binance's internal investigators concluded that the accounts constituted an organized money-laundering network explicitly designed to finance the Iranian regime, as documented in compliance reports reviewed by the Journal.
Binance's response to these disclosures has been defensive and internally contradictory. The company stated that "the overwhelming majority of these transactions have nothing to do with the Binance platform" while simultaneously declining to address specific transaction details. A company spokesperson asserted that Binance prohibits transactions with sanctioned individuals or wallets and claims appropriate action was taken upon discovering sanctioned accounts—statements that directly conflict with evidence that Zanjani's account operated openly for 15 months post-detection. The enforcement gap is particularly acute given Binance's prior history: the exchange pleaded guilty to violating Iran sanctions, and its former CEO Changpeng Zhao served a jail sentence for related violations, making continued Iranian military financing on the platform a striking compliance regression.
The revelations have triggered formal regulatory scrutiny. Democratic Senator Richard Blumenthal opened an investigation into potential sanctions violations based on Binance's own internal compliance findings. In a counter-maneuver, Binance filed a defamation lawsuit against The Wall Street Journal earlier in 2026 over previous reporting on alleged Iran-linked money laundering, a legal strategy that appears designed to suppress further investigative disclosure rather than address substantive compliance failures.
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