Binance CEO Denies Allegations of Facilitating Sanctions Evasion

Binance, the world's largest cryptocurrency exchange, has faced allegations of facilitating transactions from sanctioned individuals in Iran. The Wall Street Journal (WSJ) reported that the company allowed Babak Zanjani, an Iranian described as an 'antisanction' operator, to run his operations and move approximately $850 million through digital asset transactions over two years.

According to internal Binance compliance reports cited by the WSJ, most of Babak's transactions originated from a single wallet. The report also noted that some transfers flowed through his sister, romantic partner, and director of his company, as well as additional accounts maintained by his allies using devices linked to Babak.

Binance CEO Richard Teng responded to the allegations, stating that the WSJ article contained 'fundamental inaccuracies'. He emphasized that the company has a strong compliance framework in place and does not engage with or facilitate transactions from sanctioned individuals. Teng acknowledged that some transactions occurred before sanctions were imposed but emphasized Binance's cooperation with law enforcement authorities.

Teng highlighted that Binance proactively investigated the matter before the WSJ report and provided its findings to the agency, which chose not to mention them in the article. He assured the public that Binance has 'zero tolerance for illicit activity' and will continue working closely with US and global law enforcement authorities to combat financial crime.