Binance Denies Sanctions Breach Claims After $1 Billion Iran-Linked USDT Transactions Reported
Binance is forcefully rejecting allegations that its inner investigators uncovered greater than $1 billion in Iran-linked transactions and have been subsequently dismissed.
The pushback escalates tensions between the world’s largest crypto alternate and sections of the monetary press.
Binance Rejects Allegations and Defends Compliance Record
The controversy stems from a February 13 investigative report by Fortune, which alleged that compliance investigators identified over $1 billion in transactions tied to Iranian entities between March 2024 and August 2025.
The transfers reportedly concerned Tether (USDT) on the Tron blockchain, an ecosystem incessantly scrutinized by regulators for sanctions-related exercise.
According to the report, at the least 5 members of Binance’s compliance investigations staff have been dismissed after elevating issues internally.
Several of the affected workers have been described as senior investigators with regulation enforcement backgrounds. Additional compliance personnel have been additionally stated to have departed in latest months, although the exact causes for his or her exits weren’t publicly confirmed.
Binance Says “The Record Must Be Clear”
In a public assertion, Binance Co-CEO Richard Teng immediately refuted the allegations.
“The file should be clear. No sanctions violations have been discovered, no investigators have been fired for elevating issues, and Binance continues to fulfill its regulatory commitments. We’ve requested for corrections to latest reporting,” Teng wrote.
In a proper letter addressed to Fortune, Binance Communications acknowledged that the article contained “gross materials inaccuracies and deceptive implications.” The firm articulated that:
- No personnel have been terminated for reporting sanctions issues.
- No personnel choices or terminations are associated to the reporting of alleged sanctions violations.
Binance additional asserted {that a} full inner assessment, carried out alongside exterior authorized counsel, discovered no proof of sanctions breaches associated to the referenced exercise.
The letter emphasised that the alternate operates underneath whistleblower protections and strict employment legal guidelines throughout a number of jurisdictions.
Binance additionally pushed again in opposition to ideas it had reneged on regulatory commitments stemming from its 2023 settlement with US authorities.
The alternate has dedicated to completely cooperate with monitorship necessities. Reportedly, they’ve additionally “considerably strengthened” their sanctions screening, monitoring, and compliance infrastructure for the reason that decision.
Heightened Sensitivity Post-Settlement
The allegations are significantly delicate given Binance’s 2023 $4.3 billion settlement over anti-money laundering and sanctions violations. Since then, the alternate has operated underneath enhanced compliance obligations and elevated regulatory scrutiny.
However,past the dispute itself, the incident highlights broader issues about stablecoins and sanctions evasion.
Blockchain analytics corporations, together with TRM Labs, Chainalysis, and Elliptic, have beforehand reported rising use of USDT by Iranian-linked actors to maneuver funds outdoors conventional banking channels.
US authorities, together with the Office of Foreign Assets Control (OFAC), have sanctioned different exchanges over comparable Iran-linked exercise involving USDT on Tron.
The standoff stays a battle of narratives, with anonymous-source allegations assembly categorical company denials.
With no new enforcement motion introduced, the query shifts from whether or not violations occurred to how transparency, compliance, and investigative reporting intersect in an trade nonetheless preventing to rebuild belief.
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