DOJ probes Binance over Iran sanctions

U.S. federal prosecutors are investigating whether cryptocurrency exchange Binance violated U.S. sanctions on Iran by failing to prevent certain trading activity on its platform. The inquiry centers on whether transactions tied to Iran occurred on Binance in breach of restrictions that prohibit U.S.-related persons and entities from engaging in most forms of Iran-linked commerce.

The probe is being led by the Manhattan U.S. attorney’s office, with participation from the Justice Department’s criminal division in Washington. This multi-office involvement reflects federal scrutiny of how large crypto platforms design and enforce controls intended to block prohibited transactions.

Authorities are examining whether Binance knowingly allowed trading activity connected to Iran instead of blocking it through sanctions screening and other compliance filters. A central question for investigators is whether any Iran-linked customers or transactions were identified and permitted to proceed, or whether controls were insufficient to detect them in the first place.

The review of Binance’s controls encompasses how the exchange monitors user activity and screens counterparties against sanctions lists. Investigators are analyzing whether the systems in place were robust enough to prevent restricted parties from accessing the platform or routing trades through it.

Binance has stated that it maintains a zero-tolerance approach to sanctions violations. The company says it fully cooperates with law enforcement authorities and is committed to rooting out and shutting down bad actors who attempt to misuse its platform.

The Department of Justice has declined to comment on the ongoing probe. The Manhattan U.S. attorney’s office could not be reached for comment outside regular business hours, and no additional official details on the status or potential outcomes of the investigation have been provided.

The investigation adds to broader federal attention on sanctions compliance within the cryptocurrency sector. Large exchanges such as Binance operate across multiple jurisdictions and are expected to maintain controls that prevent sanctioned entities and individuals from accessing their services.

While no charges have been reported in connection with this probe based on the available information, the investigation underscores the regulatory risks facing global trading platforms that handle cross-border flows of digital assets. The outcome may influence how crypto firms structure their sanctions screening, enforcement practices, and engagement with U.S. authorities going forward.