The DOJ investigates Binance for possible violations of sanctions against Iran

The Iranian case against Binance is thickening. The Manhattan District Attorney's office and the criminal division of the Justice Department in Washington are examining a specific point. Did the exchange knowingly allow transactions related to Iran to persist on its platform, in violation of U.S. sanctions? This investigation comes just a week after a first action by the same department, which aimed to seize millions of dollars from Iranian oil laundered on Binance.

Key points of this article:

• Binance has been accused of potentially allowing transactions related to Iran, in violation of U.S. sanctions, according to a Justice Department investigation.
• Meanwhile, a civil complaint has been filed to confiscate $61 million in cryptocurrencies linked to clandestine sales of Iranian oil, involving two Chinese companies that used Binance.

Binance and Iran: The DOJ opens a new front in Manhattan

The specific point that investigators are scrutinizing: Did Binance know, and did it nonetheless allow it to happen?

According to Bloomberg, neither the Justice Department nor Binance has detailed the scope of the transactions targeted at this stage.

The exchange reacted through a spokesperson, stating that it applies a zero tolerance policy towards sanctions violations. It also assured full cooperation with authorities to "root out and shut the door on bad actors". This is a phrase that has been heard from them in the past on other cases.

$61 million, two Chinese companies, and a river of $1.5 billion

The immediate context of this investigation is a civil forfeiture complaint filed on September 15 by the DOJ. It concerns approximately $61 million in cryptocurrencies. This civil procedure does not target Binance as such, but only the confiscation of identified funds. It is distinct from the ongoing criminal investigation.

According to The Block, two Chinese companies appear in the case: Blessed Trust and Hexa Whale. They allegedly used trading accounts on Binance to launder proceeds from sanctioned clandestine sales of Iranian oil. This illicit trade is said to have benefited the Iranian government and its proxies, including the Revolutionary Guards. Furthermore, the department identified a series of non-hosted crypto addresses grouped under the name "Entity A". These addresses allegedly received and redistributed over $1.5 billion from this illicit trade.

"This action demonstrates our determination to deprive the Iranian government and its terrorist proxies of the illegal money they depend on to threaten the lives and safety of American citizens and others"

Deputy Prosecutor Sean S. Buckley -- Source

The Trump administration also announced in August a series of secondary sanctions targeting digital assets, technology, aviation, gold, and maritime transport related to Iran. Its officials dubbed this mechanism the "economic D-Day".

An exchange with an Iranian liability since 2018

This liability is not isolated. The Wall Street Journal published a figure last February. According to the newspaper, $1.7 billion in funds linked to Iranian networks would have passed through Binance. More than a billion would have gone through the Hong Kong company Blessed Trust, already mentioned in the civil complaint of September 15.

However, Binance firmly contests these accusations and is suing Dow Jones, the publisher of the Wall Street Journal, for defamation since March. The exchange had also settled a $4.3 billion fine with U.S. authorities for sanctions violations at the end of 2023. The U.S. presidency subsequently granted clemency to its founder Changpeng Zhao, who was sentenced to four months in prison in this case.

As Bloomberg's article notes, this case was not filed against @binance and does not allege any wrongdoing by Binance.

Let me be clear: We have zero tolerance for sanctions violations or illicit activity, and we did not permit any transactions with sanctioned individuals.
We... https://t.co/sNZmZv1ep8
--- Richard Teng (@_RichardTeng) September 15, 2026
"As noted in Bloomberg's article, this complaint was not filed against Binance and does not allege any wrongdoing by Binance. Let me be clear: we have zero tolerance for sanctions violations and illicit activities, and we have not allowed any transactions with sanctioned individuals. We will continue to cooperate with law enforcement on this matter, as we have been doing since it was raised several months ago."

The timeline may not play in Binance's favor. The exchange is also trying to refile a licensing application with the British regulator. It has also suspended its activities in several EU countries since July. It had then withdrawn its MiCA license application in Greece. Between reassuring regulators and a new criminal investigation, the platform may continue to be under pressure on a case that seems far from closing.

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