Binance, the world’s leading cryptocurrency exchange, is facing renewed scrutiny following a report that claims $850 million in transactions tied to an Iranian financier flowed through its platform over the last two years. The allegations, which center around transactions linked to the Islamic Revolutionary Guard Corps (IRGC), have ignited concerns about the exchange’s compliance controls.
The report reveals that Babak Zanjani, a financier recently re-sanctioned by the U.S. government, leveraged his firm Zedcex to execute these transactions. Notably, Zanjani operated through a single Binance account that reportedly remained active despite triggering over a dozen internal alerts indicating potential sanctions violations.
Compliance Red Flags Ignored
According to internal documents referenced in the report, Binance’s compliance team flagged the Zedcex account for unusual activity starting in late 2024. Despite these alerts, the account reportedly remained functional for over 15 months, contrary to the recommendations of Binance’s own investigators, who advised shutting down the account and reporting it to relevant authorities.
Adding to the concerns, the report indicates that Iran’s central bank deposited $107 million into Binance accounts in 2025. Furthermore, a foreign law enforcement agency tracked approximately $260 million in transactions directly associated with sanctioned Iranian entities during 2024 and 2025.
In 2023, Binance pleaded guilty to violations of anti-money laundering regulations and was fined a staggering $4.3 billion. As part of its plea agreement, the exchange committed to overhauling its compliance systems. However, it appears that allegations of Iranian fund flows resumed shortly after the plea.
Binance Responds
In response to the report, Binance CEO Richard Teng took to social media to label the claims as “fundamentally inaccurate.” He asserted that Binance has never allowed transactions involving sanctioned individuals and claimed that the flagged activities occurred before the individuals were placed under U.S. sanctions.
“Binance has zero tolerance for illicit activity,” Teng stated, emphasizing that the exchange had conducted its own investigations prior to the publication of the report, which he believed overlooked critical facts.
In an aggressive move, Binance has filed a defamation lawsuit against the publication, seeking damages and a jury trial. The exchange insists it continues to collaborate with regulators and law enforcement, while denying any knowledge of a separate investigation by the Department of Justice.
Earlier this year, further allegations surfaced regarding Binance’s internal handling of a probe into approximately $1 billion in transactions linked to Iranian proxy groups. The exchange refuted these claims, asserting that its internal investigation was still active.
The U.S. Treasury Department has issued warnings to financial institutions about potential repercussions for facilitating transactions on behalf of Iran. As part of its efforts, the Treasury also froze $344 million in Iranian-owned cryptocurrency as part of its “Economic Fury” operation.
Moreover, Treasury officials engaged with Binance executives in March to address compliance concerns stemming from the exchange’s 2023 plea deal, with a specific focus on transactions involving Iranian entities.
As the situation unfolds, the implications for Binance and its compliance practices are under intense scrutiny from regulators, investors, and the broader cryptocurrency community.
