The Department of Justice has opened a probe into whether Iran relied on Binance, the world’s leading crypto exchange, to skirt US sanctions and support militant organizations, including the Islamic Revolutionary Guard Corps and the Houthi movement, The Wall Street Journal reported Wednesday.
Officials have begun reaching out to people familiar with the transactions as they gather evidence related to funds that passed through Binance and were allegedly connected to those entities.
The scope of the investigation is still unclear, with officials not saying whether the exchange itself could face scrutiny or if the focus is limited to its users.
According to earlier reports by The Wall Street Journal, The New York Times, and Fortune, Binance kept roughly 2,000 accounts linked to Iran and processed nearly $2 billion in related transfers.
The outlets said partners Hexa Whale and Blessed Trust helped facilitate transactions tied to Iranian government entities and militant groups, while employees who raised compliance alarms were reportedly suspended or dismissed.
The reports prompted Richard Blumenthal, a senator from Connecticut, to launch an investigation into the exchange. In a letter addressed to Richard Teng, Blumenthal requested records of the transactions, the possible use of crypto for money laundering, and the firing of compliance staff who raised internal concerns.
Responding to Blumenthal’s congressional inquiry, Binance disputed allegations regarding Iranian-linked activity.
In a statement issued on March 6, the exchange stressed its KYC and sanctions enforcement measures, noting that flagged entities were offboarded after internal reviews and law enforcement requests. It also clarified that staff departures were unrelated to compliance escalations.
