Binance Faces Backlash Over Sanctions Compliance Allegations

Binance has faced intense scrutiny following a recent investigation by The Wall Street Journal (WSJ) into its sanctions compliance practices. According to the report, Binance processed approximately $1.7 billion in cryptocurrency transactions linked to sanctioned Iranian entities.

Internal investigators at the exchange allegedly identified over 1,500 accounts accessed from Iran, with funds flowing through intermediaries including Hong Kong-based Blessed Trust and Hexa Whale Trading. However, rather than addressing these concerns, Binance claims that the dismissed employees were terminated for unauthorized disclosure of confidential customer data.

The allegations carry significant weight given Binance's existing legal obligations. In 2023, the exchange admitted to anti-money-laundering and sanctions violations, agreed to $4.3 billion in penalties, and remains under a three-year DOJ and FinCEN monitorship.