Binance Faces Reported US Probe Over Iran Sanctions After $4.3bn Settlement

• US prosecutors are reportedly examining Binance’s Iran-related trading controls.

• Investigators are scrutinising possible knowing violations of sanctions.

• Binance says it cooperates with authorities and rejects sanctions violations.

• The reported investigation has not established new wrongdoing.

September 22, () – Binance is reportedly under investigation over possible violations of US sanctions on Iran, bringing its trading controls under scrutiny almost three years after the cryptocurrency exchange agreed to a $4.3 billion criminal settlement.

Federal prosecutors are examining transactions Binance allegedly failed to stop, including possible knowing permission for prohibited trading, according to Bloomberg reporting published on September 22.

People familiar with the inquiry said the Manhattan US attorney’s office is handling the investigation, with the Justice Department’s criminal division in Washington also involved.

The report provides additional details about scrutiny of Binance’s compliance. It does not establish that prosecutors opened the investigation today or that the exchange has committed a new offence.

Investigators Examine What Binance Knew About the Trades

The reported focus extends beyond prohibited activity appearing on a platform to the exchange’s knowledge and response.

Bloomberg said the specific transactions being examined were not immediately clear. Without those details, the publicly available reporting cannot establish the sums involved, the customers concerned or the controls prosecutors believe failed.

Binance said it maintains a zero-tolerance approach to sanctions violations.

“We fully cooperate with law enforcement, and we remain committed to rooting out and shutting down bad actors”, the company said in a statement reported by Reuters.

The Justice Department declined to comment. Reuters said the Manhattan prosecutor’s office could not immediately be reached outside regular business hours.

An investigation can end without charges. Binance’s statement describes its position but does not resolve the reported questions about particular transactions.

The Earlier Settlement Required Stronger Compliance Controls

In November 2023, Binance pleaded guilty to offences involving anti-money-laundering requirements, unlicensed money transmission and sanctions violations.

Its agreement included approximately $4.3 billion in forfeiture and criminal penalties, an independent compliance monitor for three years and improvements to its anti-money-laundering and sanctions programmes, according to the Justice Department’s announcement.

In that earlier case, Binance admitted failing to prevent transactions between US users and users in sanctioned jurisdictions. Those admissions concerned the conduct covered by the 2023 resolution. They are not proof of the allegations now being investigated.

The commercial issue is how effectively a large exchange can translate compliance commitments into decisions about which customers and transactions it permits.

For now, the evidence supports a report about an investigation, not a conclusion that Binance breached its settlement or faces another financial penalty. Any charges, court filings or official findings would be needed to establish the next stage.