Binance Compliance Under Scrutiny After Red-Flag Accounts Traded Post U.S. Plea Deal

Highlights:

• The leaked files show flagged Binance accounts moved billions even after the monitoring began.
• Investigators found risk signals like rapid bank changes that did not stop continued trading.
• Regulators are reviewing whether oversight measures worked after the activity continued.

Internal records obtained by the Financial Times revealed that Binance had been processing large volumes of transactions on accounts that were identified as a serious risk. The information spans activity between the years 2021 and 2025 in various regions. The review states that 13 accounts had processed approximately $1.7 billion, despite frequent warning indicators within the organization. Notably, about $144 million was transferred when Binance settled a U.S. criminal case in 2023. The timing of the activity suggests that part of it occurred during a period of promised increased regulation.

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Binance Let Hundreds of Millions Flow Through Suspicous Accounts After US Settlement: FT pic.twitter.com/xhmnMhKbDg

— AlertsAlgosBots (@Adanigj) December 22, 2025

Some of the accounts demonstrated patterns that compliance teams normally categorize as high risks. One of the accounts attributed to an occupant of a slum in Venezuela transferred approximately $93 million in four years.

According to the report, a portion of those funds found its way to a network that was later accused of financing covert terror activities. A second account, belonging to a young Venezuelan woman, was credited with over $177 million over two years. The account records indicate that the linked bank details have been altered 647 times in almost 500 different accounts globally.

The Financial Times reported that such patterns would usually result in immediate reviews or bans. The decision to change banks a lot usually indicates efforts to evade detection or controls. High transaction volumes through low-income profiles are also suspicious. Moreover, cross-border traffic between most accounts complicates monitoring. Nonetheless, the accounts are reported to have lasted long before they were discontinued.

Binance allowed suspicious accounts to operate even after 2023 US plea agreement https://t.co/5EEWGrwMCg

— Financial Times (@FT) December 22, 2025

Binance Compliance Draws Fresh Questions From Investigators

The stolen records indicate that internal controls were not always effective in preventing risky activity. Analysts interviewed by the Financial Times described the act as unlicensed money transmission. In regulated institutions, this activity usually results in freezes or more intense investigations. Nevertheless, the files show that the trading went on even after the alerts were reported.

The logs also record unusual logins belonging to various flagged accounts. In one case, the same account was logged in at Caracas and Osaka within a short period of time. Investigators termed the pattern as physically impossible in normal traveling conditions. The report mentions that the account remained active on the platform despite these indicators.

Several flagged accounts also received funds in Tether’s USDT stablecoin from wallets later frozen by Israeli authorities. Those freezes occurred under anti-terrorism laws in 2023. The report links many of the transfers to wallets tied to Tawfiq Al-Law. Al-Law was designated by the U.S. authorities as a suspected terrorist financier in 2024. These associations put pressure on issues highlighted by the leaked files.

Oversight Reviews Continue Despite Monitoring Measures

Binance informed the Financial Times that it has stringent rules and a zero-tolerance stance towards illicit actions. The exchange reported that it flags suspicious transactions and investigates them. It also pointed to compliance upgrades introduced after the U.S. settlement. Independent monitors began oversight work at Binance in 2024. However, the report states that much of the reviewed activity occurred after monitoring began.

The findings arrive during renewed scrutiny of Binance’s governance structure. That scrutiny followed a presidential pardon for founder Changpeng Zhao in October. Former intelligence officials told the newspaper the pardon complicated oversight efforts. They said political and business ties added pressure on enforcement agencies. Regulators now face questions about whether monitoring tools delivered effective control.

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