Binance Refutes WSJ Claims of $850 Million in Iran-Linked Transactions
By Abdus Salam
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In a striking rebuttal, Binance CEO Richard Teng denied allegations from a recent Wall Street Journal report, which claimed that the crypto exchange facilitated nearly $850 million in transactions linked to Iranian financier Babak Zanjani and ultimately tied to Iran’s Islamic Revolutionary Guard Corps (IRGC).
Teng, addressing the issue through a social media platform, labeled the Journal’s findings as "fundamentally inaccurate." He maintained that Binance operates under a strict compliance framework that prohibits transactions with sanctioned individuals, asserting that any flagged activities occurred prior to the imposition of sanctions.
Contention Over Compliance Procedures
The Journal’s investigation, published on May 23, highlighted Zanjani, who was re-sanctioned by the U.S. government in January, as a central figure in an elaborate cryptocurrency network allegedly involving Binance over a two-year period. The report indicated that transactions linked to Zanjani’s firm, Zedcex, continued despite internal alerts raised by Binance’s compliance team, which reportedly recommended shutting down related accounts.
Ongoing Scrutiny
In light of previous infractions, Binance faced significant penalties, having pleaded guilty to anti-money laundering violations in 2023, which resulted in a staggering $4.3 billion fine and a commitment to enhance its compliance systems. Despite these measures, the Journal flagged renewed Iranian fund flows shortly after the settlement.
Adding to the scrutiny, the U.S. Justice Department is reportedly investigating Iran’s potential usage of Binance services to circumvent existing sanctions. In response to these developments, Binance has initiated a defamation lawsuit against the Journal, disputing the characterizations made in the report.
A Call for Transparency
Teng emphasized Binance's commitment to ethical compliance practices, reiterating, "Binance has zero tolerance for illicit activity and continues to develop a leading compliance program that evolves in real-time." In April, an earlier report by the Journal suggested the exchange had shuttered an internal investigation concerning an estimated $1 billion in transactions linked to Iranian proxy networks—a claim Binance has categorically denied.
As the crypto exchange navigates these turbulent waters, the industry watches closely to see how it will address ongoing regulatory challenges and public perceptions of its compliance measures.