In a bold response to serious allegations, Binance CEO Richard Teng publicly accused the Wall Street Journal (WSJ) of defamation on February 24, 2026. This accusation follows a report in which the WSJ alleged that the popular crypto exchange had fired employees who flagged approximately $1.7 billion moving to Iranian entities.
Teng took to social media platform X to directly call out the publication for what he termed “inaccurate” reporting. He accompanied his post with a letter from Binance’s legal team, demanding a full retraction of what they described as “false and defamatory” claims made against the company.
Teng expressed, “Recently there has been inaccurate reporting about our compliance program. The Wall Street Journal published defamatory claims, and despite our efforts to set the record straight, the journalist failed to acknowledge any of our corrections on the allegations.”
The contentious piece, released by the WSJ on the previous Monday, asserted that Binance’s investigators had identified funds that were allegedly supporting “a network funding Iran-backed terror groups.” Subsequently, the report suggested that Binance dismantled the investigation, resulting in staff terminations.
Coinciding with the WSJ’s account, other major publications, including the New York Times and Fortune, echoed similar allegations, pointing to significant sums being redirected from Binance accounts to Iranian entities purportedly linked to terrorism. Binance firmly contested the validity of these reports, stating that an internal review found no evidence of sanctions violations related to the referenced transactions.
Compliance Controversy: Resignations or Firings?
Binance maintains that the compliance staff members at the center of the controversy resigned voluntarily and were not dismissed due to raising concerns about sanctions. A spokesperson emphasized that they had detected and reported suspicious activity via appropriate channels. “This is evidence that our controls are working, not the opposite,” they commented.
However, the WSJ referred to internal documents and sources familiar with Binance’s operations, indicating that the very practices leading to a significant 2023 settlement with the Department of Justice might still be occurring within the exchange. This settlement saw Binance pay $4.3 billion and its founder, Changpeng Zhao, plead guilty to a count of failing to implement an effective Anti-Money Laundering program.
Reports claim an alarming $1.7 billion was funneled from Chinese clients registered on Binance to known Iran-backed groups between 2024 and 2025.
Government Inquiry: A New Chapter for Binance
In light of these serious accusations, US Senator Richard Blumenthal has initiated a formal inquiry into Binance. He has requested records pertaining to the exchange’s dealings with two Hong Kong-based entities identified as sources of the alleged Iranian transfers. A spokesperson confirmed that a comprehensive report documenting these findings would be forwarded to the US Justice Department shortly.
In the wake of these developments, Binance has reiterated its position, asserting that its “sanctions-related exposure is minimal” and referring to the recent reporting as “distorted” and based on claims from “disgruntled former employees.”
Adding another layer of intrigue, former CEO Changpeng Zhao, who was recently pardoned by Donald Trump, spoke at a crypto forum organized by Trump-backed World Liberty Financial. He revealed plans for Binance.US to enhance its operations in the United States, indicating a potential for growth amid the storm of criticism.
As the inquiry unfolds, the spotlight remains firmly on Binance, with significant implications for the global cryptocurrency landscape as it grapples with regulatory scrutiny in an increasingly complex environment.
