The U.S. Department of Justice (DOJ) has reopened its investigation into Binance, one of the world’s largest cryptocurrency exchanges, to determine whether the platform violated the terms of a settlement reached in 2023. This scrutiny follows reports of substantial financial transactions linked to Iranian entities.
In a recent announcement, Tysen Duva, head of the DOJ’s Criminal Division, confirmed that federal prosecutors are actively reviewing Binance’s compliance following a $4.3 billion settlement that resolved a U.S. criminal case. The investigation is reportedly focused on allegations that accounts associated with Iranian financier Babak Zanjani processed approximately $850 million through the exchange.
What Triggered the Review
The renewed inquiry into Binance is triggered by three distinct cases raising concerns about the exchange’s adherence to U.S. sanctions. The most significant case involves Zanjani, who has been linked to Iran’s government and was previously sentenced to death for corruption before his sentence was commuted.
According to reports, Zanjani utilized a network of trading accounts to facilitate payments for the Islamic Revolutionary Guard Corps (IRGC), employing a combination of shell companies and trading platforms primarily located in Turkey and the United Arab Emirates. Internal documents from Binance reveal that funds amounting to at least $67 million were transferred to wallets associated with the IRGC.
In response to these findings, Binance stated that it took measures to block and remove the implicated accounts starting in late 2025, with all related accounts reportedly eliminated by May of this year.
The second case under review involves a $61 million forfeiture filing from September, which accuses two Chinese companies, Blessed Trust and Hexa Whale, of laundering proceeds from Iranian oil sales through Binance accounts. Authorities claim this network moved over $1.5 billion in illicit funds, prompting Binance to conduct internal investigations and remove both firms once the activity was detected.
Furthermore, there is a growing concern regarding whether Binance knowingly facilitated trades that contravened U.S. sanctions. This aspect of the review appears to overlap with the earlier allegations against Zanjani and the two Chinese firms.
Operational Insights
An associate of Zanjani, Sukhrob Oimakhmadov, was flagged internally by Binance as a high-value customer. His account reportedly received over $10 million from wallets that were linked to the IRGC, raising alarms about compliance protocols. Previous investigations into Oimakhmadov concerning ties to an Iranian money exchange did not lead to his account being suspended, as Binance adopted a risk-based approach at that time.
Additionally, investigations revealed a corporate account linked to a firm called Zedcex, which claimed to operate as a London-based trading platform. Records indicate that this account had over $830 million in transactions, including significant withdrawals to wallets tied to the IRGC.
Potential Outcomes
Historical precedents provide insight into the possible ramifications for Binance. Companies like Ericsson and Standard Chartered have faced severe penalties for breaches of similar agreements, while Boeing managed to renegotiate after initial violations. The outcomes of previous cases suggest that Binance could face additional fines, new compliance agreements, or even criminal charges.
As the DOJ’s review continues, a negotiated resolution seems more likely than immediate punitive measures against Binance’s operations. However, no timeline has been set for when the investigation will conclude.
