The Wall Street Journal's report addressed Binance's handling of potential sanctions evasion. The article noted that the company's internal compliance review identified accounts related to Tehran by the end of 2024 and flagged them, yet these accounts remained active for a year. According to the report, Binance faced internal pressure to close these accounts and report related activities, but they continued to operate.
This investigative article also placed the allegations within a broader regulatory context. The report mentioned that Binance admitted to violating anti-money laundering and sanctions laws in 2023, paying a record $4.3 billion fine and committing to a comprehensive overhaul of its compliance framework. The U.S. Department of Justice is investigating how Iran may have used Binance to evade sanctions. In response, Binance has filed a defamation lawsuit against the Wall Street Journal, seeking damages and a jury trial, while reiterating its statement that it was unaware of any DOJ investigation and emphasizing its cooperation with regulatory and law enforcement agencies.
In addition to the Zanjani case, the report also mentioned other alleged connections between Binance and Iran's financial network. The article stated that the Central Bank of Iran transferred $107 million in cryptocurrency to Binance accounts in 2025, and a foreign law enforcement agency tracked approximately $260 million in direct transactions between Binance and Iranian financial institutions between 2024 and 2025.
In another defense, a Binance spokesperson emphasized the company's commitment to compliance, stating that Binance has a “zero tolerance” policy for illegal activities and that the platform has established “industry-leading compliance procedures that are continuously evolving.” Additionally, Binance referenced a blog post responding to the alleged false accusations and publicly denied providing trading services to Iranian entities during a previous Senate inquiry.
Key Points Summary: The Wall Street Journal's allegations and Binance's rebuttal. The crux of the investigation revolves around the $850 million flow of funds described as linked to Babak Zanjani and his business network. The report connects these funds to Iran's network, including the Islamic Revolutionary Guard Corps. It also highlights the overlapping usage of multiple related individuals (such as Zanjani's sister, partner, and company directors) within the same operational scope and equipment.
Binance has mounted a direct defense, stating that it has never allowed transactions with sanctioned individuals, and all flagged activities occurred before these individuals were sanctioned by the U.S. The CEO's social media post pointed out that Binance had already investigated the issue prior to the Wall Street Journal's inquiry and believes the report fails to reflect the company's position.