According to a New York Times investigation, roughly $1.7 billion in cryptocurrency was transferred through the Binance platform to Iranian-linked organizations last year — including some connected to Iran’s Islamic Revolutionary Guard Corps (IRGC), which the U.S. designates as a terrorist organization.
How It Happened
Internal Binance compliance documents reviewed by The New York Times reportedly reveal that more than 1,500 Binance accounts were accessed from Iran during 2024–2025. Transactions from at least two accounts allegedly moved about $1.7 billion in crypto to groups linked to Iran’s regional proxies.
Two entities cited in reporting were:
- Blessed Trust, a Hong Kong-based payment partner whose account allegedly transferred over $1 billion to Iran-linked wallets.
- Hexa Whale Trading, another Hong Kong entity that reportedly moved about $490 million to wallets tied to Iranian entities.
Investigators said these flows may have helped Iran bypass international sanctions aimed at restricting the regime’s financial access and support for militant groups such as Yemen’s Houthi fighters.
Controversy Within Binance
According to the reports, internal compliance staff flagged these transactions and brought them to senior leadership’s attention. Shortly afterward, at least four compliance investigators were reportedly suspended or fired — although Binance disputes that their dismissals were tied to reporting sanctions concerns. The company stated dismissals were due to alleged “violations of company protocol.”
Binance leadership has also denied that its platform violated sanctions, stressing that exposure to sanctioned entities has declined sharply and that the firm maintains strong compliance systems. It argues that transactions on public blockchains can occur without prior approval, and that it acting on suspicious accounts once they are identified.
Regulatory Scrutiny and Political Fallout
The revelations have drawn attention from U.S. lawmakers. Senator Richard Blumenthal and other members of the Senate have opened inquiries into Binance’s compliance practices, demanding records about how the $1.7 billion flowed and why compliance personnel were removed. Critics argue this raises serious questions about whether Binance’s controls are robust enough to prevent sanctioned actors from exploiting the platform.
The issue also intersects with broader political debates over cryptocurrency regulation, enforcement of international sanctions, and the role of digital assets in global finance.
Broader Context
Binance, the largest global crypto exchange, has faced past legal issues over compliance failures. In 2023, it paid a $4.3 billion settlement with U.S. authorities for sanctions violations and anti-money laundering lapses, and its former founder, Changpeng Zhao, pleaded guilty to certain charges. The new allegations — if substantiated — could prompt further legal and regulatory action.
