- Binance rejects claims it fired staff after uncovering $1.7B in Iran-linked crypto flows.
- Reports cite 1,500 Iran-accessed accounts and transfers tied to IRGC-linked wallets.
- Exchange says internal review found no sanctions violations and controls worked.
Scrutiny reports claimed internal investigators uncovered $1.7 billion in transfers to Iranian-linked entities. The exchange has denied wrongdoing and has dismissed their findings.
Internal Probe and Reported Findings
Reports from The New York Times and The Wall Street Journal stated that Binance investigators identified extensive Iran-linked activity. The findings were said to involve more than 1,500 accounts accessed from Iran.
Investigators reportedly traced about $1.7 billion in crypto flows from two Binance accounts. These funds allegedly moved toward entities connected to Iran, including wallets linked to the Islamic Revolutionary Guards Corps.
One account reportedly belonged to Blessed Trust, a Hong Kong payments firm operating as a fiat partner. Investigators presented their findings to Chief Executive Richard Teng and Chief Compliance Officer Noah Perlman.
The reports further claimed that Hexa Whale Trading Limited, another Hong Kong entity, transferred roughly $500 million in USDT to the same network.
Documents cited in both publications stated that funds ultimately supported Iran-backed groups, including Yemen’s Houthis.
Within weeks of reporting the transactions, at least four investigators were reportedly suspended or dismissed. The company cited alleged mishandling of confidential client information as grounds for disciplinary action.
Binance Response and Public Statements
Binance denied that any investigator was terminated for raising compliance concerns. In a statement to The Block, the exchange said it strongly disputes the assertions in recent reports.
It also confirmed that accounts linked to the reported transactions were removed. On Monday, Binance posted on X that it reduced direct exposure to the four largest Iranian crypto exchanges.
The company stated that exposure declined by more than 97.3% between January 2024 and January 2026. Binance wrote on X that public blockchains are permissionless and exposure cannot reach zero.
Changpeng Zhao also posted on X, stating that media narratives repeated claims from former employees. He added that Binance maintains a leading compliance program.
Regulatory Context and Leadership Developments
Following that settlement, Changpeng Zhao stepped down as chief executive. Richard Teng assumed leadership while Zhao retained his majority stake in the company.
In October, Donald Trump granted Zhao a presidential pardon after he served four months in prison.
Reports also noted recent departures within Binance’s compliance division. Several senior officials exited as the company began searching for a successor to Perlman.
Binance said it shared information related to Hexa Whale and Blessed Trust with U.S. authorities. The company stated it plans to submit further documentation to the Justice Department.
Binance Iran crypto flows claims remain disputed as investigations and public statements continue. The exchange maintains that its internal controls identified and addressed the activity in question.