Binance Fires Investigators as Sanctions Risk Resurfaces

On February 13, Fortune reported that Binance had terminated a number of senior compliance investigators. They are the investigators who identified more than $1 billion in transactional flow that appeared to be associated with Iranian entities. 

Binance’s perceived backsliding in compliance could result in multiple restrictions, including weaker banking relationships and reduced institutional trading access.

The crypto firm is currently operating under a compliance monitoring mandated by the U.S., as part of the $4.3 billion settlement in 2023 related to anti-money laundering controls. The transactions were allegedly routed using the USDT stablecoin on the Tron Blockchain from March 2024 through August 2025. 

This now raises new concerns for the crypto company’s compliance efforts with U.S. sanctions. These are enforced by the Office of Foreign Asset Control (OFAC) and monitored by the Department of Justice (DoJ).

Binance Restructuring Amid Active Monitoring

At least five compliance investigators who worked on global financial crime and sanctions enforcement issues were dismissed in the last quarter of 2025. Fortune also reported that a number of senior compliance staff members have left the company in the last few months.

These changes are occurring during a larger-scale restructuring effort within Binance’s compliance department. Hence, it is no surprise that Chief Compliance Officer Noah Perlman is reportedly stepping down in 2026.

Binance did not provide comments on current investigations, but reaffirmed its commitment to abiding by sanctions regulations and cooperating with law enforcement agencies. Additionally, it stated that any employee who violates its internal policies is subject to termination.

This timing is important due to the fact that the firm had previously stated that it would enter into a new “phase of regulatory maturity.” Binance made this statement after entering into a plea agreement with U.S. authorities in 2023, requiring it to implement enhanced AML/KYC controls and to be independently monitored until 2027.

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Stablecoin Networks Raise Concerns Regarding Sanctions Exposure

As the Fortune report noted, the use of Tron-based USDT also raises questions about regulatory oversight regarding high-throughput stablecoin networks. They are typically utilized to facilitate cross-border liquidity.

These rails continue to be efficient for completing settlements. But they are being closely monitored to determine whether there is a possibility they are being used for sanctions evasion and/or other forms of illicit finance.

Binance is making significant changes to its compliance department. At the same time, there has been a shift in the regulatory environment surrounding digital currencies in the United States. It also comes after President Trump issued a pardon for former CEO Changpeng Zhao, who had pleaded guilty.

During the same period, Binance continues to actively recruit for compliance positions. This suggests that the company will be making significant internal compliance changes, but is unlikely to significantly reduce current controls and regulations.

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