Binance Disputes Reports of $850M in Iran-Linked Transactions

Binance is currently contesting allegations that it processed $850 million in transactions tied to an Iranian-linked payment network over a two-year period [1]. The exchange’s CEO, Richard Teng, has publicly rejected the claims as “fundamentally inaccurate,” arguing that the transactions in question occurred before the involved parties were subject to formal sanctions [1, 2].

Key takeaways

• The Wall Street Journal reported that $850 million was routed through a Binance account linked to Iranian financier Babak Zanjani [1].
• Binance CEO Richard Teng maintains that the transactions predated official sanctions designations on the parties involved [1].
• The exchange asserts that blockchain tracing can lead to misattributions by conflating indirect intermediary wallet activity with direct servicing of sanctioned accounts [1, 2].
• Binance reports that its exposure to sanctions-linked transactions dropped from 0.284% in 2024 to 0.009% in 2025 following compliance upgrades [2].
• The U.S. Department of Justice is currently investigating potential sanctions evasion related to the exchange [1].

Disputed links to Iranian financial networks

The allegations center on a payment network reportedly engineered by Babak Zanjani, a financier previously convicted in Iran on corruption charges [1, 2]. Reports suggest that a significant portion of this activity flowed through a single Binance trading account that remained active until January 2026 [2]. While the Wall Street Journal alleged that some of these funds may have been connected to Iranian military organizations, Binance has denied that such a connection exists in the manner described by the publication [1].

Binance has pushed back against the characterization of its involvement, noting that blockchain analysis is complex and often misidentifies the flow of digital assets [1]. The company stated that much of the alleged volume did not originate from activity conducted directly on its platform, but rather through intermediaries and decentralized addresses [2]. Furthermore, Binance clarified that it has a “zero tolerance” policy for sanctioned parties and has not confirmed the existence of any direct Iranian accounts on its platform [1].

Regulatory scrutiny and legal fallout

This latest dispute is part of a broader, ongoing conflict between Binance and the Wall Street Journal, which previously published reports in February 2026 alleging between $1 billion and $1.7 billion in Iran-linked transactions [1]. In response to the earlier coverage, Binance filed a defamation lawsuit against the newspaper in March 2026 [1]. The exchange is also currently operating under a U.S.-appointed compliance monitor as part of a $4.3 billion settlement reached in 2023 regarding anti-money laundering and sanctions violations [2].

Why it matters

The situation remains a significant test for Binance as it attempts to demonstrate the effectiveness of its compliance overhaul [1]. While the exchange has expanded its compliance and risk-management divisions to over 1,500 employees, it faces continued scrutiny from federal authorities, including the Department of Justice and Senate inquiries led by Senator Richard Blumenthal [1, 2]. The outcome of the ongoing defamation lawsuit and the results of the federal investigations are considered critical factors for the company’s future regulatory standing and reputation [1].