Binance Sues WSJ For Defamation Over Iran Sanctions Article as DOJ Opens Probe

Crypto exchange Binance has sued the Wall Street Journal (WSJ) for defamation over an article alleging the exchange processed transactions linked to Iranian entities. This move comes just as the U.S. Department of Justice (DOJ) opened a probe into whether Iranian entities used the exchange to evade sanctions.

Binance Files Lawsuit Against WSJ For Defamation

In a blog post, Binance revealed that it has filed a lawsuit against the Wall Street Journal over “false and defamatory” reporting published on February 23, 2026. The WSJ had alleged in that article that the exchange had fired a staff member who flagged $1 billion moving to sanctioned Iranian entities.

“We filed to protect our reputation, correct the public record, and prevent misinformation from driving unnecessary confusion and distraction across the ecosystem,” the exchange said. It also affirmed that their compliance program is substantial and measurable in its outcomes, including a 96.8% reduction in sanctions-related exposure.

Binance filed the action in the Southern District of New York. In the court filing, the top crypto exchange categorically denied the Wall Street Journal’s allegations, calling them false. Meanwhile, the exchange is seeking “vindication of its reputation and recovery of damages” resulting from the article.

Furthermore, it noted that these false statements have only “metastasized” with multiple members of Congress adopting and repeating the article’s false statements as the basis for sending letters to them. At the same time, other government officials are demanding further inquiry into these allegations.

As CoinGape reported, Senator Richard Blumenthal sent a letter to the exchange probing the allegations made by the WSJ. Binance responded to the probe, stating that it had removed flagged entities after investigations tied to suspicious wallets.

DOJ Launches Probe Into Allegations

According to a WSJ report, the DOJ is investigating Iran’s use of Binance to evade sanctions. The report revealed that these investigators are examining whether crypto assets that moved through the exchange helped support Iranian-linked groups, including Yemen’s Houthis.

WSJ reported that Justice Department officials have contacted people with knowledge of the Iranian transactions to request interviews and gather evidence, citing people familiar with the matter. However, it remains unclear whether the DOJ is investigating the top crypto exchange for potential misconduct or only its customers.

At the same time, the Treasury Department-appointed monitor overseeing Binance’s compliance program has recently requested that the exchange provide information on these Iranian transactions. It is worth noting that the exchange was assigned independent compliance monitors as part of the 2024 settlement with the DOJ over banking violations.