In a major development for cryptocurrency regulation, Binance Co-CEO Richard Teng has issued a firm and detailed denial of a Wall Street Journal (WSJ) report alleging the exchange violated U.S. and international sanctions against Iran and terminated an internal investigator who uncovered the transactions. Teng labeled the claims as "entirely untrue," sparking a high-stakes public and legal confrontation.
Binance's technical rebuttal focused on the transaction chain. Teng clarified that three unverified intermediary wallets existed between a Binance wallet and the final receiving wallet, meaning no funds flowed directly from a Binance-controlled wallet to any sanctioned or Iran-related entity. Following an internal investigation, the company stated it blocked the relevant accounts and reported the matter to law enforcement.
The exchange also strongly denied firing any employee for raising compliance concerns, defending its internal governance. This dispute emerges against the backdrop of Binance's 2023 settlement with U.S. authorities for over $4 billion related to past compliance issues, which included mandates to enhance its sanctions screening.
In a bold countermove, Binance has announced its intention to pursue a defamation lawsuit against the Wall Street Journal. This escalates the conflict to a potential courtroom battle where Binance would need to prove the published information was false and published with malice. A court case could force unprecedented transparency through the discovery of internal documents.
The allegations are part of broader investigations by U.S. authorities into whether Iranian actors have used crypto platforms to bypass sanctions, with reports indicating over $1 billion in digital assets may be linked to Iran-associated networks. The situation highlights the intense technical and regulatory challenges global crypto exchanges face in monitoring complex, pseudonymous blockchain transactions for sanctions compliance.
