Iran allegedly funneled billions through Binance to fund its military

Iran is accused of moving billions of dollars through the cryptocurrency exchange Binance to finance its military and allied groups, according to internal compliance documents reviewed by the Wall Street Journal and other outlets [1]. The alleged network, tied to Iranian businessman Babak Zanjani, reportedly processed $850 million up to December 2025 and may be part of a larger $2.5 billion flow [4].

Key takeaways

• A Binance‑linked network tied to Babak Zanjani moved roughly $850 million through the platform through late 2025 [4].
• Experts estimate about half of those funds may have supported Iran’s military operations [1].
• Binance says the majority of the transactions had no connection to its platform and that it barred sanctioned accounts [1].
• U.S. Senator Richard Blumenthal has opened a Senate Homeland Security Committee probe into Binance’s compliance controls [2].
• Internal Binance investigators who raised concerns were reportedly disciplined or dismissed, a claim the company disputes [3].

Internal investigations reveal large crypto flows

Compliance reports obtained by the Wall Street Journal show that Zanjian’s primary Binance account remained active for up to 15 months after being flagged, and that the account alone handled $850 million in digital token transfers through December 2025 [1]. The same reports suggest the broader network may have moved as much as $2.5 billion, with $1.7 billion flagged in earlier coverage and an additional $850 million identified in the latest documents [1][4]. Analysts estimate that roughly $425 million of the total could have been directed to Iran’s Islamic Revolutionary Guard Corps or other military‑related entities [1].

Binance’s response to the allegations emphasizes that “the overwhelming majority of these transactions have nothing to do with the Binance platform” and that the exchange does not permit transactions with sanctioned individuals or wallets [1]. The company declined to comment on the specific transactions under scrutiny and has previously sued the Wall Street Journal for defamation over earlier reporting [1].

U.S. government and congressional scrutiny intensifies

The revelations have spurred federal action. Senator Richard Blumenthal, chair of the Senate Homeland Security Committee, opened an inquiry into Binance’s internal controls, citing concerns that the exchange “ignored warnings and recommendations to prevent Iranian money‑laundering schemes” [2]. The Department of Justice has also launched a probe into Iran’s use of Binance to evade sanctions and fund proxy groups, including Yemen’s Houthi militants [2]. In May 2026, the Treasury Department privately demanded that Binance strictly adhere to the compliance monitoring program established under its 2023 anti‑money‑laundering settlement [2].

Why it matters