The U.S. Department of Justice (DOJ) has launched an investigation into whether Iranian networks used the cryptocurrency exchange Binance to evade American sanctions, according to a report by The Wall Street Journal. Investigators are examining digital transactions that allegedly routed more than $1 billion through the platform, potentially helping fund financial networks linked to Iran-backed groups, including Yemen's Houthi militants.
The probe is assessing how funds moved through the exchange, with federal investigators contacting individuals with knowledge of the transactions to request interviews and gather evidence. Authorities have not yet confirmed whether the investigation targets Binance itself for possible misconduct or focuses solely on users who may have exploited the platform to bypass sanctions.
This inquiry follows an internal Binance investigation into suspicious activity tied to a payments intermediary that allegedly facilitated transfers from Chinese clients into crypto wallets associated with Iranian-linked networks. Binance stated it cooperated with law enforcement and eventually shut down the account linked to the transactions. The exchange claims subsequent reviews found only about $24 million flowed into wallets associated with Iran’s Islamic Revolutionary Guard Corps, far less than initial estimates tied to the broader network.
The investigation places Binance back in the regulatory spotlight after the company reached a $4.3 billion settlement with U.S. authorities in 2023 over anti-money-laundering and sanctions violations. Former Binance CEO Changpeng "CZ" Zhao pleaded guilty to related charges, served four months in jail in 2024, and received a pardon from U.S. President Donald Trump in October 2025.
Binance maintains that it complies with international sanctions laws and does not directly transact with sanctioned entities. The Justice Department has not publicly commented on the investigation, and it remains unclear whether the inquiry will result in formal charges or regulatory action.
