In a recent twist surrounding Binance, Changpeng Zhao (CZ) has rebuffed allegations suggesting that the cryptocurrency exchange terminated multiple internal investigators due to their findings on Iran-related transactions. Taking to social media platform X, Zhao characterized the claims as contradictory and questionable.
The controversy arose from a report by Fortune, which detailed how, between March 2024 and August 2025, substantial transactions—totaling over $1 billion—were flagged for their connections to Iranian entities. These activities reportedly involved Tether’s USDT stablecoin, which has increasingly been scrutinized in relation to sanctions compliance.
Zhao’s response came after the report indicated that the dismissals of at least five investigators, each with law enforcement backgrounds, were a direct consequence of their findings. These individuals had been focused on addressing issues such as sanctions evasion and counter-terrorism financing.
Responding to the allegations, Zhao stated that he found inconsistencies within the report and raised questions about whether it was indeed representative of the investigators’ performance. “If the allegations were accurate, one could also argue those investigators failed to prevent suspicious activity,” he noted. Furthermore, Zhao implied that the narratives surrounding the issue could be built upon unnamed sources who might harbor discontent.
Despite the significant size of the transactions involved, the report did not suggest any direct accusations of regulatory violations against Binance. However, it came at a time when blockchain analytics firms reported marked increases in stablecoin usage by Iranian-backed entities, with one firm, Elliptic, noting that wallets affiliated with Iran’s central bank had amassed over $500 million in USDT.
These funds were allegedly utilized to bolster Iran’s currency and facilitate trade in a context where traditional banking channels are less viable due to sanctions. This puts Binance under heightened scrutiny, especially as regulatory bodies continue to monitor the activities of global cryptocurrency exchanges.
The backdrop of this situation is further complicated by Binance’s ongoing compliance reforms as part of a 2023 settlement with U.S. authorities, which saw the exchange admit to anti-money laundering and sanctions violations. Though Binance agreed to a staggering $4.3 billion settlement, Zhao stepped down from his position as CEO and received a four-month prison sentence.
Richard Teng took over leadership amidst these compliance changes, and the exchange implemented enhanced oversight measures. However, speculation surrounds the potential links between recent staff departures within the compliance team and the contentious Iran-related findings, with no definitive connections made public.
Zhao’s statements place a spotlight on the internal dynamics at Binance as it navigates these turbulent waters, affirming the company’s continued reliance on third-party anti-money laundering screening tools. As the scrutiny intensifies, Binance remains under the watchful eye of regulators, further emphasizing the importance of transparency and adherence to legal standards in the rapidly evolving cryptocurrency landscape.
The scrutiny on Binance serves as a reminder of the balancing act that cryptocurrency exchanges must perform—ensuring compliance while also fostering innovation and trust among their user base.
