Binance Denies Sanctions Breach Claims After $1 Billion Iran-Linked USDT Transactions Reported
Binance is forcefully rejecting allegations that its internal investigators uncovered more than $1 billion in Iran-linked transactions and were subsequently dismissed.
The pushback escalates tensions between the world’s largest crypto exchange and sections of the financial press.
Binance Rejects Allegations and Defends Compliance Record
The controversy stems from a February 13 investigative report by Fortune, which alleged that compliance investigators identified over $1 billion in transactions tied to Iranian entities between March 2024 and August 2025.
The transfers reportedly involved Tether (USDT) on the Tron blockchain, an ecosystem frequently scrutinized by regulators for sanctions-related activity.
According to the report, at least five members of Binance’s compliance investigations team were dismissed after raising concerns internally.
Several of the affected staff were described as senior investigators with law enforcement backgrounds. Additional compliance personnel were also said to have departed in recent months, though the precise reasons for their exits were not publicly confirmed.
Binance Says “The Record Must Be Clear”
In a public statement, Binance Co-CEO Richard Teng directly refuted the allegations.
In a formal letter addressed to Fortune, Binance Communications stated that the article contained “gross material inaccuracies and misleading implications.” The company articulated that:
- No personnel were terminated for reporting sanctions concerns.
- No personnel decisions or terminations are related to the reporting of alleged sanctions violations.
Binance further asserted that a full internal review, conducted alongside external legal counsel, found no evidence of sanctions breaches related to the referenced activity.
The letter emphasized that the exchange operates under whistleblower protections and strict employment laws across multiple jurisdictions.
Binance also pushed back against suggestions it had reneged on regulatory commitments stemming from its 2023 settlement with US authorities.
The exchange has committed to fully cooperate with monitorship requirements. Reportedly, they have also “significantly strengthened” their sanctions screening, monitoring, and compliance infrastructure since the resolution.
Heightened Sensitivity Post-Settlement
The allegations are particularly sensitive given Binance’s 2023 $4.3 billion settlement over anti-money laundering and sanctions violations. Since then, the exchange has operated under enhanced compliance obligations and increased regulatory scrutiny.
However,beyond the dispute itself, the incident highlights broader concerns about stablecoins and sanctions evasion.
Blockchain analytics firms, including TRM Labs, Chainalysis, and Elliptic, have previously reported growing use of USDT by Iranian-linked actors to move funds outside traditional banking channels.
US authorities, including the Office of Foreign Assets Control (OFAC), have sanctioned other exchanges over similar Iran-linked activity involving USDT on Tron.
The standoff remains a battle of narratives, with anonymous-source allegations meeting categorical corporate denials.
With no new enforcement action announced, the question shifts from whether violations occurred to how transparency, compliance, and investigative reporting intersect in an industry still fighting to rebuild trust.
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