DOJ Investigating Whether Iran Used Binance to Evade US Sanctions

DOJ Investigating Whether Iran Used Binance to Evade US Sanctions

The U.S. Justice Department is investigating whether Iran exploited Binance to circumvent American sanctions, according to reporting from the Wall Street Journal on Wednesday. The investigation centers on more than $1 billion in transactions that allegedly flowed through the world’s largest cryptocurrency exchange to Iran-backed terror groups.

Officials have begun contacting individuals with knowledge of these transactions, the WSJ reported, citing sources familiar with the matter. The department is gathering evidence to determine whether the investigation should target Binance itself or customers who used the platform for sanctions evasion.

This latest development marks the second major sanctions allegation against Binance in recent weeks. The Wall Street Journal previously reported that Binance allowed approximately $1.7 billion worth of transactions tied to Iranian and Russian sanctions evasion to occur on its platform before the activity was detected.

Binance Pushes Back on Reporting

Binance has responded aggressively to the allegations, issuing denials and taking legal action against its accusers. A company spokesperson told the WSJ that the exchange “categorically did not directly transact with any sanctioned entities.”

According to the statement, Binance uncovered what it described as a “sophisticated, multijurisdictional pattern of financial activity” where Iran connections were “only identified and sanctioned after Binance began investigating and taking action in lock step with law enforcement to shut down this network.”

The exchange’s Global Head of Litigation, Dugan Bliss, went further, filing a lawsuit against the Wall Street Journal for what Binance characterized as “false and defamatory reporting.” The company claimed the February 23 story—which alleged that Binance had fired compliance staff after discovering Iran-linked transactions—caused “significant reputational harm and business consequences.”

In the lawsuit filing, Bliss accused the newspaper of “prioritizing clicks over journalistic integrity” and called the legal action a “necessary step to defend ourselves against misinformation.”

Compliance Claims and Senate Scrutiny

Binance has maintained that it maintains “one of the largest and most robust compliance programs” in the cryptocurrency industry. The exchange pointed to what it described as measurable improvements in its sanctions screening capabilities.

According to the company, exposure to sanctions-related activity declined by 96.8% from January 2024 to July 2025. Binance also claimed that direct exposure to Iran’s four major crypto exchanges dropped by 97.3% between January 2026 and February 2026.

The exchange has further stated that it has frozen hundreds of millions of dollars linked to illicit activity as part of its compliance efforts. These claims came in a letter sent to U.S. Senator Richard Blumenthal, a Connecticut Democrat who launched his own probe into Binance following the media reports.

Blumenthal’s investigation was triggered by earlier reporting from Fortune, which cited multiple sources and internal documents. That story claimed Binance had fired members of its compliance team after evidence surfaced showing that Iran-linked entities received more than $1 billion through the platform between March 2024 and August 2025.

What Comes Next

The DOJ investigation now adds federal scrutiny to existing pressure on Binance from Capitol Hill and the media. The outcome could have significant implications for how cryptocurrency exchanges approach sanctions compliance going forward.

The investigation also highlights ongoing regulatory concerns about the cryptocurrency industry’s role in facilitating international financial flows. Sanctions evasion through digital assets has become a focal point for U.S. law enforcement agencies, particularly regarding Iran and Russia.

Binance has denied violating U.S. sanctions laws in its communications with lawmakers and the press. The company maintains that it has cooperated with law enforcement and taken decisive action to prevent sanctioned entities from using its platform.

As the investigation progresses, the crypto industry will likely face increased scrutiny around compliance procedures and customer verification protocols. The case underscores the tension between cryptocurrency’s borderless nature and governments’ expectations that platforms enforce financial sanctions.

Decrypt has reached out to Binance for additional comment on the DOJ investigation and will update this story should the company respond.

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