Binance Faces U.S. Probe Over Iran Sanctions Compliance

Federal prosecutors are investigating Binance Holdings Ltd. over possible violations of U.S. sanctions on Iran, raising fresh regulatory scrutiny of the world’s largest cryptocurrency exchange, according to a Bloomberg report.

The investigation is being led by the U.S. Attorney’s Office in Manhattan, with the Department of Justice’s criminal division in Washington also involved, Bloomberg reported, citing people familiar with the matter.

Federal authorities are examining whether Binance failed to prevent certain Iran-linked trading activity from taking place on its cryptocurrency platform. A key focus of the probe is whether the exchange knowingly allowed transactions that may have violated U.S. sanctions restrictions.

The investigation adds to Binance’s history of regulatory and legal challenges in the United States, particularly involving anti-money laundering controls and compliance with financial sanctions.

In 2023, Binance reached a $4.3 billion settlement with U.S. authorities after admitting to violations involving anti-money laundering requirements and sanctions laws. The landmark settlement required the cryptocurrency exchange to strengthen its compliance framework and subjected the company to increased oversight.

The latest Binance investigation could therefore draw renewed attention to how major cryptocurrency platforms identify and restrict transactions involving sanctioned jurisdictions. Iran remains subject to extensive U.S. economic sanctions, placing significant compliance obligations on financial companies operating within the reach of American law.

Authorities are now seeking to determine whether Binance’s systems and compliance measures were sufficient to block prohibited trading and whether any potentially restricted activity was knowingly permitted.

The reported probe comes as U.S. regulators and law enforcement agencies continue to increase scrutiny of cryptocurrency exchanges over sanctions compliance, money laundering risks and cross-border transactions.

No charges have been announced in connection with the investigation, and the existence of a probe does not establish that Binance or its executives committed wrongdoing. The outcome and timeline of the federal investigation remain unclear.