Digital
Binance faces US probe over possible Iran sanctions violations
Manhattan prosecutors examine whether crypto exchange knowingly allowed restricted trading activity
NEW YORK: Binance is facing a US federal investigation into whether it violated sanctions on Iran by failing to prevent certain trading activity on its platform, according to Bloomberg News.
The probe is being led by the Manhattan US attorney’s office, with the criminal division of the US Department of Justice also involved, Bloomberg reported, citing people familiar with the matter.
Investigators are examining whether Binance knowingly allowed trading activity that breached US sanctions on Iran. The probe adds another layer of regulatory scrutiny for the world’s largest cryptocurrency exchange.
Binance said it maintains a zero-tolerance approach to sanctions violations and cooperates with law enforcement authorities. The company said it remains committed to identifying and shutting down bad actors on its platform.
The DOJ declined to comment, while the Manhattan US attorney’s office did not immediately respond to requests for comment outside regular business hours.
The latest investigation comes after Binance faced a major US enforcement action in 2023. Its then-chief Changpeng Zhao stepped down and pleaded guilty to violating US anti-money laundering laws as part of a $4.3 billion settlement that resolved a years-long investigation into the crypto exchange.
The company’s latest legal challenge also comes as Washington intensifies economic pressure on Iran. Earlier this month, the US imposed sanctions on firms and individuals it accused of supporting Hezbollah and other Iranian-backed groups in the Middle East.
The reported Binance probe highlights the continuing scrutiny faced by global cryptocurrency platforms over their ability to prevent sanctioned entities and jurisdictions from accessing financial services.
