Binance Pushes Back Against Iran-Linked Transaction Claims

Tensions are rising between Binance and parts of the U.S. media and regulatory ecosystem after allegations surfaced that the exchange failed to act on transactions linked to sanctioned Iranian entities.

The controversy comes at a time when Washington is sharply escalating enforcement actions against crypto platforms tied to Tehran.

The dispute was triggered by an investigative report claiming that internal compliance staff had identified nearly $1 billion in transactions connected to Iranian actors between March 2024 and August 2025. According to the report, the activity involved Tether (USDT) operating on the Tron blockchain, and several investigators were allegedly dismissed after raising concerns.

Richard Teng, CEO of Binance, publicly pushed back against the claims. He said an internal review – conducted with the support of external legal counsel – found no evidence of sanctions breaches tied to the flagged transactions. Teng also denied that any employees were terminated in retaliation, stating that staff departures were based on legitimate internal decisions and emphasizing that Binance maintains whistleblower protections.

The exchange has formally requested corrections to the reporting.

Allegations Surface During Ongoing U.S. Monitorship

The timing of the accusations adds another layer of sensitivity. Binance is currently operating under a government-imposed monitorship following its $4.3 billion settlement with U.S. authorities in 2023 over prior compliance failures. That agreement placed the company under heightened regulatory supervision.

The transactions in question reportedly occurred over a 17-month window and centered on USDT transfers via the Tron network. While Binance disputes wrongdoing, the broader regulatory environment has grown increasingly hostile toward platforms accused of facilitating Iran-related activity.

Washington Targets Entire Exchanges, Not Just Wallets

In early 2026, the U.S. Department of the Treasury – through its Office of Foreign Assets Control – shifted its strategy. Instead of focusing mainly on individual crypto wallets, authorities began blacklisting entire exchanges accused of enabling sanctioned entities.

January saw a landmark move against UK-registered exchanges Zedcex and Zedxion, which were sanctioned for allegedly processing transactions tied to Iran’s Islamic Revolutionary Guard Corps. One of the platforms reportedly handled more than $94 billion in transactions since 2022. The exchanges were linked to Babak Morteza Zanjani, an Iranian businessman previously convicted of major financial crimes.

Earlier enforcement waves targeted Garantex, which was accused of facilitating ransomware-related flows. When a successor platform, Grinex, emerged, U.S. authorities moved quickly to designate it as well, citing billions in processed transactions. In 2024, Cryptex and PM2BTC were also identified for allegedly servicing cybercriminal networks.

This widening crackdown signaled a strategic pivot: regulators are now going after the infrastructure layer of crypto markets rather than isolated addresses.

Stablecoins Under Intensifying Scrutiny

Stablecoins have become a central focus of enforcement. Reports that Iran’s central bank acquired more than $500 million in USDT to help stabilize the rial have amplified regulatory concerns. Exchanges that facilitate large-scale stablecoin liquidity – including Binance and others – now face closer examination.

Under the direction of President Donald Trump, the Treasury has intensified what it describes as a renewed “maximum economic pressure” campaign. A February 2026 executive order authorized tariffs of up to 25% on countries that continue trading with Iran, underscoring a broader geopolitical strategy that extends beyond digital assets.

A Defining Moment for Crypto Compliance

The clash between Binance and its critics reflects a broader transformation in global crypto oversight. As U.S. authorities escalate sanctions enforcement and target entire exchange ecosystems, major platforms are under pressure to demonstrate airtight compliance controls.

For Binance, already navigating post-settlement supervision, the current allegations arrive at a delicate moment. Whether the dispute results in formal regulatory action or fades after internal reviews and media corrections, it highlights a new reality: in 2026, crypto exchanges are operating squarely within the geopolitical crosshairs.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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