Binance Faces US Criminal Probe Over Iran Sanctions Violations What We Know

(MENAFN- Live Mint) US prosecutors are investigating cryptocurrency exchange Binance over possible violations of US sanctions on Iran and trading activity conducted through its platform, according to a person familiar with the matter, Reuters reported on 22 September.

Binance faces US probe over possible Iran sanctions violations

The investigation is being led by federal prosecutors from the US Attorney's Office for the Southern District of New York and the Justice Department's criminal division in Washington. Bloomberg News first reported the probe, saying investigators are examining whether Binance knowingly allowed trading that breached US sanctions.

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The US Attorney's Office for the Southern District of New York and the Justice Department's criminal division declined to comment on the investigation.

Binance, meanwhile, said it maintains a zero-tolerance approach to sanctions violations and is cooperating with authorities.

“We fully cooperate with law enforcement, and we remain committed to rooting out and shutting down bad actors,” the company said in a statement to Reuters.

Why is Binance facing scrutiny?

The latest investigation comes as Washington has intensified its sanctions campaign against Iranian entities and individuals accused of supporting Tehran and its regional proxies.

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Earlier this month, federal prosecutors in Manhattan also sought the forfeiture of millions of dollars linked to Iranian oil sales that they alleged had been laundered through Binance. The new criminal probe appears to examine a related question: whether the exchange's systems and controls adequately prevented prohibited Iran-linked trading.

Binance has already faced significant US enforcement action over its handling of sanctions and anti-money laundering requirements.

In November 2023, the company pleaded guilty to federal charges involving violations of the Bank Secrecy Act, operating as an unregistered money-transmitting business and violating the International Emergency Economic Powers Act.

Binance agreed to pay more than $4.3 billion in penalties and forfeiture, while its then-chief executive and founder, Changpeng Zhao, also pleaded guilty to failing to maintain an effective anti-money laundering programme.

The Justice Department said at the time that Binance knew it had users in comprehensively sanctioned jurisdictions, including Iran, as well as US users.

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Prosecutors said the exchange failed to prevent transactions between the two groups, resulting in more than $898 million in trades between US users and users ordinarily resident in Iran between January 2018 and May 2022.

Zhao stepped down as CEO as part of the 2023 resolution and later served nearly four months in prison. In October 2025, President Donald Trump pardoned Zhao, according to the White House and Reuters.

The current investigation does not establish that Binance committed a new sanctions violation. Prosecutors are examining the matter, and no new criminal charges against the exchange have been announced.

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