Binance Denies WSJ Report on Alleged Iran-Linked Crypto Transactions

Binance has responded to allegations made in a recent Wall Street Journal investigation, denying claims of processing $850 million in transactions linked to a sanctioned Iranian financier. In a statement, the exchange's CEO Richard Teng stated that Binance never permitted transactions with sanctioned individuals and that any flagged activity occurred before those individuals were placed under US sanctions.

The Wall Street Journal investigation found that a secret crypto payment network ran $850 million through Binance accounts over two years, allegedly operated by Babak Zanjani and his associates. The network reportedly used devices linked to Zedcex, a firm owned by Zanjani, as well as the accounts of his sister, romantic partner, and company director.

Binance's internal compliance reports flagged the Zedcex account after detecting access from Tehran in late 2024, but the account remained active for over a year, triggering multiple further internal alerts. The exchange's own investigators recommended that the accounts be shut down and reported to authorities, but this was not done.

The allegations come as Binance faces ongoing scrutiny over its compliance systems, having pleaded guilty in 2023 to anti-money laundering and sanctions violations and paid a record $4.3 billion fine. The Justice Department is also investigating Iran's use of Binance to evade sanctions, following the exchange's guilty plea.