US federal prosecutors are investigating Binance for potentially violating sanctions against Iran. The probe, led by the Manhattan US attorney's office and the Justice Department's criminal division, is examining whether the crypto exchange knowingly allowed trades that breached US sanctions.
The investigation could lead to significant penalties for Binance and further complicate the use of digital assets for circumventing international sanctions.
US federal prosecutors are investigating whether Binance, the world's largest cryptocurrency exchange, violated sanctions against Iran by allowing certain trading activity on its platform, Bloomberg News reported Tuesday, citing people familiar with the matter. The probe is being led by the Manhattan US attorney's office, with the Justice Department's criminal division in Washington also involved. Authorities are examining whether Binance knowingly facilitated such trading.
Binance issued a statement asserting a zero-tolerance approach to sanctions violations and affirming its commitment to cooperating with law enforcement and removing bad actors. The Department of Justice declined to comment, and the Manhattan US attorney's office could not be immediately reached outside of regular business hours.
This scrutiny follows past US attention on Binance. In 2023, its then-chief, Changpeng Zhao, stepped down and pleaded guilty to breaking US anti-money laundering laws, resulting in a $4.3 billion settlement. Earlier this month, the US government intensified its economic isolation campaign against Iran by imposing sanctions on entities and individuals accused of aiding Hezbollah and other Iranian proxies in the Middle East.
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