U.S. Prosecutors Open New Probe Into Binance Over Iran Sanctions

The Manhattan U.S. Attorney’s Office is spearheading the investigation, with support from the Justice Department’s Criminal Division. Prosecutors are currently scrutinizing the exchange’s internal compliance protocols to determine if the company possessed knowledge of illicit transactions that should have been blocked under existing law. While the scope of the review remains under wraps, it follows a September 14 civil forfeiture complaint filed in the Southern District of New York involving $61 million in Tether linked to Iranian oil sales.

This forfeiture action targets funds allegedly funneled through Binance by two Chinese firms, Blessed Trust and Hexa Whale, which prosecutors claim laundered proceeds for the Islamic Revolutionary Guard Corps. Binance maintains that it offboarded both entities after internal reviews and cooperation with law enforcement. The exchange asserts that its current "zero-tolerance" policy for sanctions violations is robust, noting that 25% of its global workforce is dedicated to compliance. Despite these defenses, the new probe raises questions about the efficacy of the monitoring systems implemented following the company’s 2023 guilty plea, which required the appointment of an independent compliance monitor to oversee its operations.