The U.S. Department of Justice has launched an investigation into whether Iran used the world’s largest crypto exchange, Binance, to evade U.S. sanctions and move funds linked to militant groups.
Citing people familiar with the matter and internal company documents, WSJ notes that investigators are examining transactions that allegedly routed more than $1 billion through the exchange to a financial network connected to Iran-backed organizations.
DOJ Probes Iran’s $1 Billion Crypto Network on Binance Linked to Houthi Militants
Among the groups reportedly linked to the network are militants affiliated with the Houthi movement in Yemen, a faction long supported by Tehran.
Authorities are said to have begun reaching out to individuals with knowledge of the transactions to request interviews and gather evidence.
The investigation aims to determine how the funds moved through the platform and whether sanctions violations occurred.
At this stage, it remains unclear whether prosecutors are targeting Binance itself or focusing solely on users who leveraged the platform to facilitate the transfers.
However, the inquiry signals renewed regulatory scrutiny on the crypto exchange, which has already faced significant legal challenges in the United States.
Binance Back in the Legal Spotlight
The investigation comes just a few days after the court cleared Binance and its CEO, Changpeng Zhao (CZ) of terrorism financing claims.
US District Judge Jeannette Vargas determined that the 535 plaintiffs failed to plausibly allege that Binance and CZ were directly culpable for the violence.
Meanwhile, US lawmakers may have drawn the DOJ’s attention to the latest matter after pushing for a probe in a letter backed by 11 Senators, including Chris Van Hollen and Elizabeth Warren.
They claim investigators uncovered at least two Binance accounts used to channel assets to entities linked to the Iran-backed Houthis and the Islamic Revolutionary Guard Corps.
According to the lawmakers, the fund movements directly threaten the exchange’s historic 2023 settlement with US authorities.
Notably, the latest developments have put the exchange back under scrutiny following its founder’s controversial pardon by President Donald Trump.
Compliance Monitor Requests Transaction Data
Adding to the pressure, a compliance monitor appointed by the U.S. Department of the Treasury has reportedly requested detailed information from Binance regarding Iranian-linked transactions.
According to people familiar with the request, regulators are particularly interested in the role of a business partner that allegedly sent a large portion of the funds through the platform.
Investigators are trying to determine whether the transactions were flagged internally and how Binance’s compliance systems handled the activity.
The outcome of the probe could have far-reaching implications for the crypto industry. Regulators worldwide have increasingly warned that digital assets can be exploited to bypass sanctions and move funds across borders outside traditional banking systems.
Binance has spent the past two years rebuilding trust with regulators and institutions.
After all that effort, this new investigation becomes a critical test of whether its compliance reforms are working or whether deeper systemic issues remain.
Binance did not immediately respond to BeInCrypto’s request for comment.
