Binance Denies WSJ Report Alleging Sanctions Violations and Investigator Firings

Crypto exchange Binance has strongly rejected a Wall Street Journal report accusing the company of firing employees who allegedly uncovered transactions linked to sanctioned entities, including Iran-backed groups. The dispute has intensified scrutiny around Binance’s compliance program and its past settlement with U.S. authorities.

On Tuesday, Binance co-CEO Richard Teng criticized the Wall Street Journal for what he described as “inaccurate reporting” regarding the exchange’s compliance controls. In a post on X, Teng shared a letter from Binance’s New York-based legal counsel asserting that the publication made defamatory claims despite the company’s attempts to clarify the facts. The letter follows a similar response sent to Fortune over related allegations.

The Journal reported that Binance dismissed investigators who identified roughly $1 billion in transactions allegedly connected to networks funding Iran-backed militant organizations. The article cited internal documents and unnamed sources familiar with Binance’s operations, claiming the exchange dismantled an internal investigation. Additional reports referenced $1.7 billion in transfers during 2024 and 2025 from Binance-registered Chinese clients to groups including Yemen’s Houthi militants.

Binance disputes these claims, stating that the investigators in question resigned and were not fired for raising compliance concerns. A spokesperson told CoinDesk that an internal review found no violations of applicable sanctions laws tied to the transactions described. The company added that suspicious activity was properly detected and reported, demonstrating that its anti-money laundering (AML) and sanctions controls are functioning effectively.

The controversy comes after Binance’s 2023 settlement with the U.S. Department of Justice, in which the exchange and founder Changpeng “CZ” Zhao admitted to violating federal money laundering laws. Binance maintains that its sanctions-related exposure remains minimal and that recent reports rely on misleading accounts from former employees. The company said a full report related to the matter will be submitted to the U.S. Justice Department on Feb. 25 as investigations continue.