Binance probed by DoJ, files lawsuit against WSJ

Binance has launched a lawsuit against the Wall Street Journal (WSJ) over a series of allegedly “defamatory” articles that revealed how the exchange shut down an internal investigation into billions of dollars worth of crypto flowing to Iran.

The February articles detailed how Binance fired its investigators shortly after they found Chinese entities sending $1.7 billion worth of crypto to accounts linked to Iran’s Revolutionary Corps.

Now, the WSJ reports that these findings have led to an investigation from the US Department of Justice (DoJ). 

The DoJ is reportedly reaching out to people with knowledge of the transfers and firings, but hasn’t disclosed if Binance or the Chinese entities are the focus of the investigation.   

US senators launched their own inquiry last month, demanding Binance share documents on a trove of data, from information on the dubious accounts to the internal reports filed by compliance investigators.

Binance lawsuit claims WSJ ‘sacrificed truth for profit’

Binance has maintained that the WSJ’s reporting has been incorrect since it was published.

Now, the lawsuit claims the “false, defamatory, and reckless” findings have led to this “metastasized” response from US officials that continues to damage its reputation.

The suit denies that it fired compliance staff for investigating transactions, shuttered the investigation without further action, failed to comply with law enforcement requests, and knowingly registered customers with false details. 

It also claims that the WSJ didn’t include its responses to initial questions before publishing the piece, and that it did so to beat the New York Times to the scoop.

Read more: Binance demands the Wall Street Journal remove ‘damaging’ article

“Instead of actually engaging with Binance, the Wall Street Journal prioritized filing quickly on the heels of the NYT so that it could maximize views of the article,” the lawsuit claims. 

It also alleges, “The Wall Street Journal’s failure to respond to Binance’s request for an extension until the deadline arose and its decision to move that deadline up without a substantive response from Binance demonstrates its rush to publish the article to keep up with a competitor, regardless of the truth.”

The suit adds, “The Wall Street Journal must not be allowed to set aside journalistic standards and publish false, defamatory, and sensationalized narratives that sacrifice truth for profit.”

Binance is seeking damages for the reputational harm it claims has been caused, attorney fees, and a trial by jury. 

Senators say Binance is repeating the crimes of its past

Binance was fined $4.3 billion in 2023 for failing to implement adequate anti-money-laundering and sanctions checks. Its former CEO, Changpeng Zhao, was sentenced to four months in prison. 

As part of this settlement, Binance agreed to onboard a compliance monitor that would ensure the exchange was up to code. 

The probe launched by senators, however, claims that the WSJ’s findings show Binance is a “repeat offender” revisiting the crimes of its past. 

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Democrat Senator Richard Blumenthal wrote, “Binance appears to have ignored warnings and recommendations to prevent Iranian money laundering schemes on its cryptocurrency exchange, allowing $1.7 billion in transfers to Iran.

“These transactions have helped prop up Iranian-linked terrorist organizations and illicit Russian oil sales.”

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