DOJ Investigates $1B in Iran-Linked Crypto Transactions Routed Through Binance

Highlights:

• The Justice Department is reviewing transactions on Binance linked to suspected Iranian financial networks.
• Iran-linked crypto transactions on Binance have drawn scrutiny as investigators review more than $1B in transfers.
• Binance denies wrongdoing and says its internal review traced far smaller transfers to wallets tied to Iranian groups.

US investigators are examining crypto transfers that reportedly moved through Binance and are linked to Iranian financial networks. The Wall Street Journal reported the inquiry, citing company documents and people familiar with the transactions. Officials want to determine whether Iranian actors used the exchange to move funds despite US sanctions. They are also reviewing whether some transfers helped finance groups backed by Iran.

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DOJ PROBES IRAN’S ALLEGED USE OF BINANCE TO EVADE U.S. SANCTIONS

The U.S. Department of Justice is reportedly investigating whether Iranian entities used Binance to move funds and bypass American sanctions.

The probe could increase regulatory pressure on major crypto exchanges… pic.twitter.com/0TJmrCMywX

— Crypto Town Hall (@Crypto_TownHall) March 11, 2026

Investigators are focusing on more than $1 billion in digital transactions that reportedly passed through Binance accounts. Some of the transfers allegedly supported networks connected to Yemen’s Houthi militants. However, authorities have not confirmed whether the probe targets Binance or specific users who used the platform. For now, investigators continue gathering information.

Earlier reports described an internal review inside Binance that examined suspicious transfers tied to Iranian proxy groups. Investigators now want to understand how those transfers traveled through the exchange. They also want to know who controlled the wallets connected to the network. The Justice Department has not publicly confirmed the investigation.

Iran-Linked Crypto Transactions and the Dispute Between Binance and Investigators

Binance has rejected claims connected to the reported investigation. The company said it never ended an internal compliance review into the transactions. Instead, Binance said its internal investigation continued and examined financial activity across several regions. These regions included parts of Asia and the Middle East.

The company said the review uncovered a complex network that moved funds through several jurisdictions. Binance stated that its investigators identified the account connected to the activity. The exchange then closed the account linked to those transfers. Binance also said it shared information with law enforcement during the process.

Binance also published a blog post that described the fund flows and disputed the claims in the report. The company said the post explained how investigators traced the transactions. Binance also said it remains unaware of any active investigation by the Justice Department.

The exchange has also taken legal action against the Wall Street Journal. Binance filed a defamation lawsuit in the Southern District of New York and requested damages and legal fees. The company has also asked for a jury trial. The issue also overlaps with a Senate investigation that began earlier this year. Senator Richard Blumenthal launched the February probe into Binance’s compliance practices. Binance has repeatedly denied the accusations tied to that inquiry.

Binance’s evasive response completely dodges my questions & does little to ease my concerns that sanctioned entities, terrorist organizations, & other criminal actors have been surreptitiously laundering nearly $2B using its cryptocurrency exchange since its 2023 consent order.

— Richard Blumenthal (@SenBlumenthal) March 8, 2026

Binance’s Earlier Legal Settlement and Ongoing Concerns Over Sanctions Compliance

The new focus comes following a large-scale settlement that Binance reached with authorities in the United States. The exchange acknowledged breaching anti-money-laundering and sanctions legislation. Binance agreed to pay $4.3 billion and undergo continued regulatory supervision in the United States.

Former Binance chief executive Changpeng Zhao also faced charges in the same case. Zhao was found guilty and sentenced to four months in prison. US President Donald Trump pardoned Zhao in October last year. Scholars have also analyzed the functioning of the crypto ecosystem in Iran amid sanctions pressure. According to a report by TRM Labs, Iranian trade volumes in crypto have decreased over the last few years. Nevertheless, the report claimed that the country retains an active digital asset infrastructure.

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