Federal prosecutors, including the U.S. Department of Justice, are investigating whether Binance Holdings Ltd. permitted Iran-linked entities to trade on its platform. The inquiry aims to determine if the exchange knowingly facilitated activities that allowed Iran to bypass U.S. sanctions.
This investigation follows a recent move by the U.S. Department of Justice to seize $61 million in cryptocurrency. Authorities allege these funds originated from black-market sales of Iranian oil and were laundered through Binance by Chinese entities.
The U.S. Treasury has intensified efforts against Iranian crypto usage, including the designation of the Iranian exchange BitBank as part of Operation Economic Outcast. Officials noted that Iranian regime assets, primarily in Tether stablecoins, have been frozen.
Iran has increasingly utilized bitcoin for cross-border transactions following central bank guidance to support the national economy. Earlier this year, the country also launched a bitcoin-backed insurance service for its shipping companies.
Binance previously exited the U.S. market and reached a settlement of $4.3 billion regarding anti-money laundering violations. Former CEO Changpeng Zhao stepped down after pleading guilty to charges related to the platform's failure to detect illicit fund flows.
