Binance Faces US Criminal Investigation Over Iran Sanctions Violations | What we know

U.S. prosecutors are investigating cryptocurrency exchange Binance for possible violations of U.S. sanctions against Iran and trading activity conducted through its platform, according to a person familiar with the matter, Reuters reported on Sept. 22.

Binance is facing a US investigation for possible violations of Iran sanctions

Federal prosecutors from the US Attorney’s Office for the Southern District of New York and the Department of Justice’s Criminal Division in Washington are leading the investigation. Bloomberg News first reported on the investigation, saying that investigators are looking into whether Binance knowingly allowed trading that violated US sanctions.

The U.S. Attorney’s Office for the Southern District of New York and the Justice Department’s Criminal Division declined to comment on the investigation.

Meanwhile, Binance said it maintains a zero-tolerance approach to sanctions violations and is cooperating with authorities.

“We are cooperating fully with law enforcement and remain committed to rooting out and stopping bad players,” the company said in a statement to Reuters.

Why is Binance facing scrutiny?

The latest probe comes as Washington has stepped up its sanctions campaign against Iranian entities and individuals accused of supporting Tehran and its regional proxies.

Earlier this month, federal prosecutors in Manhattan also sought the forfeiture of millions of dollars linked to the sale of Iranian oil that was allegedly laundered through Binance. The new criminal investigation appears to be examining a related question: whether the exchange’s systems and controls adequately prevent prohibited trading linked to Iran.

Binance has already faced significant US enforcement action for handling sanctions and anti-money laundering requirements.

In November 2023, the company pleaded guilty to federal charges of violating the Bank Secrecy Act, operating an unregistered money transmitter business, and violating the International Emergency Economic Powers Act.

Binance agreed to pay fines and forfeit more than $4.3 billion, while its then-CEO and founder Changpeng Zhao also admitted to failing to maintain an effective anti-money laundering program.

The Justice Department said at the time that Binance knew it had users in comprehensively sanctioned jurisdictions, including Iran, as well as users in the US.

Prosecutors said the exchange failed to prevent transactions between the two groups, resulting in more than $898 million in trades between US users and users usually residing in Iran between January 2018 and May 2022.

Zhao resigned as CEO under Resolution 2023 and later spent nearly four months in prison. In October 2025, President Donald Trump granted Zhao a pardon, according to the White House and Reuters.

The current investigation has not shown that Binance has committed any new sanctions violations. Prosecutors are investigating the matter and no new criminal charges have been filed against the exchange.