DOJ Investigates Binance Exchange for Iran's Suspected Use to Evade Sanctions

Federal investigators are reviewing whether Iranian government entities and affiliated militant groups relied on the Binance crypto exchange to move funds in violation of US sanctions, according to a report published Wednesday. The Department of Justice has begun interviewing individuals familiar with the transfers as officials work to understand how the transactions were conducted and who may have been involved.

The inquiry follows a series of reports from major outlets that detailed how accounts tied to Iran allegedly operated on the exchange. While the scope of the DOJ’s review remains uncertain, officials have not indicated whether the focus is limited to specific users or if Binance itself could face additional scrutiny.

Key Details From Ongoing Federal and Congressional Reviews

Earlier reporting from The Wall Street Journal, The New York Times, and Fortune stated that Binance maintained roughly 2,000 accounts linked to Iran and processed close to $2 billion in related transfers. Those outlets also identified two partners, Hexa Whale and Blessed Trust, as entities that helped facilitate transactions associated with Iranian government organizations and militant groups. Employees who raised internal concerns about compliance practices were reportedly suspended or dismissed, raising further questions about oversight inside the company.

The allegations prompted Senator Richard Blumenthal of Connecticut to open a congressional investigation into the exchange. In a letter to Binance CEO Richard Teng, Blumenthal requested detailed records of the transactions, information on any potential use of crypto for money laundering, and documentation related to the departures of compliance staff who had flagged internal issues. His inquiry signaled growing interest in Washington regarding how crypto platforms manage sanctions enforcement and monitor high‑risk activity.

Binance pushed back on the claims in a statement issued on March 6. The company said it maintains strict KYC and sanctions controls and emphasized that accounts tied to flagged entities were offboarded following internal reviews and requests from law enforcement. It also stated that staff departures were unrelated to compliance escalations and that the exchange continues to cooperate with authorities.

The DOJ’s investigation adds another layer of pressure for Binance, which has faced a series of regulatory and legal challenges over the past two years. While investigators have not outlined a timeline or potential next steps, the probe underscores the heightened attention US officials are placing on crypto flows connected to sanctioned jurisdictions. For now, the focus remains on gathering evidence and determining whether the transactions in question violated federal law or reflected broader gaps in oversight across the exchange.