Binance Accused of Processing $850M in Crypto Tied to Iranian Networks

Key Points

• A Wall Street Journal investigation alleges that $850 million in cryptocurrency transactions connected to networks associated with Iran’s Islamic Revolutionary Guard Corps passed through Binance over a two-year period.
• Babak Zanjani, an Iranian businessman, allegedly operated a payment network via his company Zedcex through one Binance account that continued operating despite receiving more than a dozen compliance warnings.
• Internal compliance teams at Binance reportedly flagged Iranian access and recommended account closures, but the accounts allegedly remained operational for over 15 months.
• According to reports, Iran’s central bank transferred $107 million into Binance accounts in 2025, while a foreign law enforcement entity identified $260 million in transactions directly connected to sanctioned Iranian organizations.
• Richard Teng, Binance’s CEO, has rejected these allegations as “fundamentally inaccurate,” with the exchange pursuing a defamation case against the Journal.

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The world’s leading cryptocurrency exchange, Binance, finds itself facing renewed allegations following a Wall Street Journal investigation that claims the platform processed $850 million in transactions connected to a sanctioned Iranian financier across a two-year timeframe.

The investigation pointed to Babak Zanjani, who was re-sanctioned by United States authorities in January, as running a cryptocurrency payment operation through Binance user accounts. The Journal reported that Zanjani’s company, Zedcex, operated alongside accounts registered to his sister, a romantic partner, and a company executive, all accessed via identical devices — a red flag that Binance’s internal compliance team identified as potential sanctions circumvention.

Compliance Warnings Allegedly Went Unheeded

Binance’s internal monitoring systems identified that the Zedcex account was being accessed from Tehran in late 2024. Despite generating over a dozen internal compliance alerts, the account allegedly continued to function for more than 15 months. Internal investigators reportedly pushed for the accounts to be terminated and for authorities to be notified, yet according to the Journal’s reporting, those recommendations were not implemented.

The allegations extend beyond the Zanjani-connected network. The Journal’s investigation claims that Iran’s central bank deposited $107 million in cryptocurrency into Binance accounts during 2025. Additionally, a foreign law enforcement agency reportedly traced approximately $260 million in transactions flowing directly between Binance accounts and Iranian entities throughout 2024 and 2025.

In 2023, Binance admitted guilt to violations of anti-money laundering regulations and sanctions protocols, resulting in a historic $4.3 billion penalty. The exchange committed to comprehensive compliance reforms as part of that settlement. Nevertheless, the Journal maintains that the purported Iranian-linked transactions recommenced soon afterward.

Exchange Leadership Disputes the Claims

Binance CEO Richard Teng has forcefully challenged the allegations through a statement on X, characterizing the Journal’s reporting as “fundamentally inaccurate.” He maintained that Binance has never authorized transactions involving sanctioned parties, and that any suspicious activity identified occurred prior to those individuals being designated under US sanctions.

The exchange has initiated defamation proceedings against the Wall Street Journal, requesting monetary damages and a jury trial. Binance informed Cointelegraph that it maintains ongoing cooperation with regulatory bodies and law enforcement agencies, while denying awareness of a Department of Justice probe that was reported separately in March.

In February, the Journal had previously claimed that Binance terminated an internal investigation into approximately $1 billion that allegedly reached networks connected to Iranian proxy organizations. Binance disputed those claims as well, asserting that its internal investigation remained active.

The US Department of the Treasury has cautioned financial institutions about potential repercussions for enabling transfers on behalf of Iran, and has seized $344 million in Iranian-controlled cryptocurrency through its “Economic Fury” initiative.

Treasury representatives also convened with Binance leadership in March to address compliance issues related to the 2023 plea agreement, including transactions involving Iranian entities, according to individuals with knowledge of the discussions.

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