Key highlights:
- Binance is facing a new investigation from US prosecutors over possible Iran-linked transactions
- The exchange asserts that it has a zero-tolerance policy toward sanctioned transactions
- US prosecutors have recently intensified their scrutiny over violations of sanctions compliance
Crypto exchange Binance is under fresh scrutiny as US federal prosecutors opened an investigation into possible sanctions violations involving Iran. The team is probing the exchange’s compliance controls to know whether the company has allowed certain Iran-linked trading knowingly.
US prosecutors probe Binance over Iran-linked trading
A Bloomberg report says that Binance, the world’s largest crypto exchange, is facing investigation from federal prosecutors over possible violations of US sanctions on Iran. The probe focuses on identifying whether the company has permitted certain Iran-linked transactions despite the sanctions.
People familiar with the matter stated that the Manhattan US Attorney’s Office is dealing with the case, while the Justice Department’s Criminal Division in Washington is also taking part in the investigation. The US prosecutors are reportedly checking whether Binance had knowledge of the transactions and still allowed them to proceed.
Currently, the department hasn’t revealed the exact transactions that are under investigation. It is also not clear whether the exchange would face criminal charges. As the investigation is still going on, more details could only be available when US authorities reveal them after reviewing Binance’s compliance sanctions rules.
Significantly, the latest probe comes as US prosecutors have intensified their scrutiny over crypto transactions linked to Iran. As part of the initiative, the Manhattan US Attorney’s Office sought to seize around $61 million in crypto allegedly generated from Iran’s black-market oil trade. Binance was also in the picture as the authorities stated that the funds were laundered later via crypto channels, including the exchange.
Binance defends its sanctions compliance
Despite allegations and ongoing investigations, Binance continues to maintain that it takes sanctions compliance seriously. The exchange stated that it has a “zero-tolerance policy” toward sanctions violations. The statement read,
“We maintain a zero-tolerance policy toward sanctions violations. We fully cooperate with law enforcement and continue to work to identify and block malicious actors.”
As noted by Binance in February, about 1,500 employees, or around 25% of its global workforce, concentrate on compliance-related work.
Earlier in 2026, Binance faced similar scrutiny over Iran-linked transactions. A lawsuit filed in November last year alleges Binance processed transactions linked to groups such as Hamas, Hezbollah, the Palestinian Islamic Jihad, and Iran’s Islamic Revolutionary Guard Corps. But the exchange defended its part, asserting that the company had investigated the accounts and worked with law enforcement amid concerns. The company added:
“No exchange, whether crypto or traditional, can guarantee that risk never touches its platform. What distinguishes a responsible institution is what happens when it does: whether the risk is detected, investigated, mitigated, and reported. In every case described in recent coverage, Binance did all four.”
In addition, Binance noted that the company hasn’t allowed Iran-based customers to use the platform. Using tools like KYC checks, location tracking, and sanctions screening, the exchange identifies and blocks restricted users and transactions.
Source:: Binance Faces US Probe Over Possible Iran Sanctions Violations