Binance has recently filed a defamation lawsuit against The Wall Street Journal, stemming from an article published in February 2026 regarding Iran's use of cryptocurrency to evade sanctions. Binance believes that the report severely misinterprets its compliance system and internal risk control capabilities, damaging its business reputation. The lawsuit focuses on whether the article objectively reflects Binance's actual measures for sanctions compliance, rather than targeting any government investigation itself.
According to the office of U.S. Senator Chris Van Hollen, on February 27, 2026, several senators jointly sent a letter to Binance, requesting clarification on its control mechanisms to prevent illegal financial activities, setting a deadline for response by March 13. The letter referenced media reports on Binance's compliance shortcomings as a basis for pressure.
At the same time, some media outlets reported that the U.S. Department of Justice is investigating whether Iran is using Binance for fund transfers, but as of mid-March 2026, the U.S. has not issued a formal statement confirming the details of the investigation. Binance emphasized that this civil lawsuit is unrelated to any official investigation.
In response to claims in the report that employees were fired for reporting compliance issues and that management suppressed internal reviews, Binance firmly denied these allegations. According to its public response, the company has formed a compliance and risk team of over 1,500 people, with the proportion of sanction-related transactions significantly decreasing from 0.284% in January 2024 to 0.009% in July 2025. Additionally, Binance proactively identified and terminated partnerships with high-risk entities such as Blessed Trust and Hexa Whale in 2025, noting that early risks primarily stemmed from multi-layer intermediary transactions rather than direct associations.
Dugan Bliss, head of global litigation at Binance, stated that the lawsuit aims to correct market misinformation and protect the company's reputation and business stability. He emphasized that in the face of systemic misinformation, companies have a responsibility to clarify facts through legal means and maintain public trust.