Last week, the US Department of Justice (DOJ) alleged that proceeds from the black market sale of sanctioned Iranian oil were laundered using accounts on Binance. In this context, it filed a lawsuit to seize approximately $61 million worth of cryptocurrency allegedly linked to the Iranian government and the Iranian Revolutionary Guard Corps (IRGC).
While developments between the US, Iran, and Binance are being closely monitored, it has recently been reported that US federal prosecutors are investigating whether Binance, the world’s largest cryptocurrency exchange, violated US sanctions regulations by failing to block certain transactions related to Iran.
According to Bloomberg, the investigation focuses on whether Binance allowed certain transactions to take place on its platform that should have been stopped under sanctions.
The report also stated that the investigation was being conducted by the U.S. Attorney’s Office in Manhattan, New York, and that the U.S. Department of Justice’s Criminal Division in Washington was also involved.
As part of the investigation, authorities are looking into whether Binance’s compliance teams were negligent or “knowingly allowed” transactions by sanctioned shell companies. The specific transactions under investigation have not yet been revealed.
Binance: “Zero Tolerance for Sanctions”
Binance stated in its announcement that it has a zero-tolerance policy against sanctions violations and fully cooperates with law enforcement. The company said it is committed to identifying and removing actors who violate sanctions from its platform.
It remains unclear at this stage whether the investigation will result in any charges or trials. The report notes that the information about the investigation could not be independently verified and the U.S. Department of Justice declined to comment on the matter.
Binance has previously been the target of investigations by US authorities regarding sanctions and anti-money laundering regulations. In November 2023, the company pleaded guilty to violating various federal regulations, including US banking and sanctions laws. As part of a settlement with the US Department of Justice, Binance agreed to pay approximately $4.3 billion in fines.
*This is not investment advice.
