TLDR
- A Wall Street Journal investigation alleges that approximately $850 million in cryptocurrency transactions connected to networks associated with Iran’s Islamic Revolutionary Guard Corps passed through Binance across a two-year period.
- Babak Zanjani, an Iranian financier, allegedly operated a crypto payment system via Zedcex through a single Binance account that remained operational despite numerous internal compliance warnings.
- Internal compliance teams at Binance reportedly flagged Iranian access patterns and recommended account closures, yet the accounts continued operating for over 15 months.
- According to the report, Iran’s central bank transferred $107 million into Binance accounts in 2025, while foreign law enforcement traced $260 million in transactions directly tied to sanctioned Iranian organizations.
- Richard Teng, Binance’s CEO, has dismissed the allegations as “fundamentally inaccurate,” with the exchange filing a defamation suit against the Wall Street Journal.
The world’s leading cryptocurrency exchange, Binance, finds itself at the center of fresh controversy following a Wall Street Journal investigation alleging that $850 million in transactions connected to a sanctioned Iranian financier moved through its platform across a two-year span.
According to the Journal’s findings, Babak Zanjani—who was re-sanctioned by United States authorities in January—operated an extensive crypto payment operation through Binance accounts. His company Zedcex, along with accounts registered to his sister, romantic partner, and a corporate director, were reportedly accessed using identical devices—a red flag that Binance’s internal compliance team identified as potential sanctions circumvention.
Compliance Teams Raised Red Flags That Were Allegedly Overlooked
Binance’s internal monitoring systems identified that the Zedcex account was being accessed from Tehran in late 2024. The account allegedly generated more than a dozen internal compliance alerts but remained active for over 15 months. According to the Journal’s report, Binance compliance investigators not only recommended terminating these accounts but also suggested reporting them to relevant authorities—actions that reportedly never materialized.
The Journal’s investigation extended beyond the Zanjani network, revealing that Iran’s central bank allegedly deposited $107 million in cryptocurrency into Binance accounts during 2025. Additionally, a foreign law enforcement agency reportedly traced approximately $260 million in direct cryptocurrency transactions between Binance accounts and Iranian entities throughout 2024 and 2025.
In 2023, Binance entered a guilty plea for violations related to anti-money laundering regulations and sanctions compliance, resulting in a historic $4.3 billion penalty. As part of the settlement agreement, the exchange committed to comprehensive reforms of its compliance infrastructure. Nevertheless, the Journal’s report suggests that the alleged Iranian-related transactions recommenced shortly thereafter.
Exchange Leadership Disputes the Allegations
Binance’s CEO Richard Teng took to X to challenge the Journal’s reporting, characterizing it as “fundamentally inaccurate.” Teng maintained that Binance has never knowingly facilitated transactions involving sanctioned parties, emphasizing that any suspicious activity occurred prior to the individuals being designated under US sanctions.
Teng further asserted that Binance had conducted its own investigation into these matters before the Journal reached out, and that critical facts the exchange provided were omitted from the published story. “Binance has zero-tolerance for illicit activity,” Teng stated emphatically.
The cryptocurrency exchange has initiated defamation proceedings against the Wall Street Journal, requesting monetary damages and a trial by jury. Binance informed Cointelegraph that it maintains ongoing cooperation with regulatory bodies and law enforcement agencies, while denying awareness of a Department of Justice probe that was separately disclosed in March.
In February, the Journal had previously reported that Binance terminated an internal inquiry concerning approximately $1 billion in transactions flowing to networks associated with Iranian proxy organizations. Binance refuted those claims, maintaining that its internal investigation remained active.
The US Department of the Treasury has issued warnings to financial institutions regarding potential repercussions for processing transfers on Iran’s behalf, and has frozen $344 million in Iranian-controlled cryptocurrency through its “Economic Fury” initiative.
Treasury Department officials reportedly convened with Binance leadership in March to address compliance matters related to the 2023 plea agreement, including transactions involving Iranian entities, according to sources with knowledge of the discussions.
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