Crypto exchange Binance is facing allegations that internal investigators uncovered $1.7 billion in transactions tied to Iranian entities, including Yemen’s Houthi militants. As reported by The Guardian, the findings have renewed scrutiny of the company’s compliance practices.
Investigators reportedly identified more than 1,500 accounts accessed by individuals in Iran. Among them, two accounts allegedly moved $1.7 billion to Iranian-backed groups during 2024 and 2025, raising questions about oversight and sanctions enforcement.
Binance has denied violating sanctions laws and disputed claims of internal retaliation. The company maintains that it complied with applicable regulations and that no employees were dismissed for raising compliance concerns.
Internal findings and political ties draw renewed scrutiny
A Binance spokesperson said the company “did not violate sanctions laws in respect of the transactions described” and rejected claims that internal investigators were dismissed for flagging potential sanctions issues. The spokesperson added that “no investigator was dismissed for raising compliance concerns or for reporting potential sanctions issues.” Amid the Iran carrier buildup, scrutiny of enforcement and risk controls has remained a focus.
Despite those denials, internal investigators reportedly briefed executives on the transactions. Following those reports, at least four employees were disciplined, with some allegedly fired or suspended. The stated reason was violations of company protocol related to the handling of client data.
The reported discovery of the transactions occurred before President Donald Trump issued a pardon to Binance founder Changpeng Zhao in October. Trump told reporters at the time that what Zhao did “was not even a crime” and suggested he had been treated unfairly. Separately, tariff refund questioning has also kept attention on the administration’s decision-making.
Zhao founded Binance in 2017 and built it into the world’s largest cryptocurrency exchange. In 2023, he pleaded guilty to money laundering charges, resigned from the company, and was sentenced to four months in prison. He also agreed to pay a $50 million fine and was barred from further involvement in the business.
Binance separately pleaded guilty in 2023, agreeing to a criminal fine of nearly $1.81 billion and a $2.51 billion forfeiture order. The company committed to internal monitoring and pledged to prevent illicit activity on its platform, including transactions involving customers in Iran.
The Guardian also reported that Trump’s family crypto venture, World Liberty Financial, has previously worked with Binance, and Zhao attended a conference at Mar-a-Lago earlier this month. The White House had not commented on the latest allegations as of publication.
Published: Feb 23, 2026 08:15 pm