Key Takeaways
- A recent Wall Street Journal investigation claims approximately $850 million in cryptocurrency transactions connected to networks associated with Iran’s Islamic Revolutionary Guard Corps passed through Binance during a two-year period.
- The operations allegedly centered on financier Babak Zanjani, who utilized his company Zedcex to operate the payment system via a single Binance account that persisted despite receiving over a dozen internal warnings.
- Internal compliance teams at Binance reportedly identified Iranian access and recommended account closures, yet the accounts allegedly continued operating for more than 15 months.
- Reports indicate Iran’s central bank transferred $107 million into Binance accounts in 2025, while international law enforcement identified $260 million in direct transactions connected to sanctioned Iranian organizations.
- Richard Teng, Binance’s CEO, strongly refuted these allegations, labeling the journalism as “fundamentally inaccurate,” while the platform pursues a defamation case against the publication.
The world’s leading cryptocurrency exchange, Binance, finds itself facing renewed allegations following a Wall Street Journal investigation that alleges $850 million in transactions connected to a sanctioned Iranian financial figure passed through its systems during a two-year timeframe.
The investigation named Babak Zanjani, who was re-sanctioned by United States authorities in January, as running a cryptocurrency payment operation through Binance accounts. According to the report, Zanjani’s enterprise, Zedcex, plus accounts registered to his sister, romantic partner, and a corporate director, were all accessed using identical devices — a red flag that Binance’s internal compliance team reportedly identified as potential sanctions circumvention.
Compliance Warnings Allegedly Disregarded
Binance’s internal monitoring infrastructure identified that the Zedcex account was being accessed from Tehran during late 2024. Despite generating more than a dozen internal compliance warnings, the account allegedly remained operational for over 15 months. Internal compliance personnel reportedly advised account termination and regulatory reporting, but the Journal’s investigation suggests no action was taken.
Expanding beyond the Zanjani operation, the Journal’s findings indicated that Iran’s central bank deposited $107 million in cryptocurrency into Binance accounts throughout 2025. Additionally, an international law enforcement body traced approximately $260 million in direct cryptocurrency transfers between Binance accounts and Iranian organizations during 2024 and 2025.
In 2023, Binance entered a guilty plea for violations related to anti-money laundering protocols and sanctions compliance, resulting in a historic $4.3 billion penalty. As part of the settlement agreement, the exchange committed to comprehensive compliance system reforms. Nevertheless, the Journal’s reporting suggests the alleged Iranian-linked financial activity recommenced shortly thereafter.
Exchange Leadership Contests Allegations
Binance CEO Richard Teng vigorously disputed the allegations through a post on X, characterizing the reporting as “fundamentally inaccurate.” He asserted that Binance has never authorized transactions involving sanctioned parties, and that any flagged activities preceded the imposition of US sanctions on those individuals.
Teng further claimed that Binance had conducted its own investigation into these matters prior to the Journal’s outreach, and that factual information provided by the exchange was excluded from the published story. “Binance has zero-tolerance for illicit activity,” Teng stated.
The cryptocurrency platform has initiated defamation litigation against the Wall Street Journal, pursuing financial compensation and requesting a jury trial. Binance informed Cointelegraph that it maintains ongoing cooperation with regulatory authorities and law enforcement agencies, while denying awareness of a Department of Justice investigation that was separately reported in March.
Previously in February, the Journal had reported that Binance terminated an internal investigation concerning approximately $1 billion that allegedly moved to networks associated with Iranian proxy organizations. Binance disputed this claim, maintaining that its internal investigation remained active.
The US Treasury Department has issued warnings to financial institutions regarding potential consequences for enabling transfers benefiting Iran, and has frozen $344 million in Iranian-controlled cryptocurrency under its “Economic Fury” initiative.
Treasury Department representatives also conducted meetings with Binance leadership in March to address compliance issues related to the 2023 plea agreement, including transaction activity involving Iran, according to sources with knowledge of the discussions.
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