Key Points
- A recent Wall Street Journal investigation alleges that approximately $850 million in cryptocurrency transactions connected to networks associated with Iran’s Islamic Revolutionary Guard Corps passed through Binance over a two-year period.
- Babak Zanjani, an Iranian financier, allegedly utilized his company Zedcex to operate a payment network through one Binance account that continued operating despite numerous internal compliance warnings.
- Internal compliance teams at Binance reportedly advised closing the accounts and noted Iranian access patterns, yet the accounts remained operational for over 15 months.
- According to reports, Iran’s central bank transferred $107 million into Binance accounts in 2025, while a foreign law enforcement body identified $260 million in transactions directly connected to sanctioned Iranian parties.
- Richard Teng, Binance’s CEO, has rejected these allegations as inaccurate, and the platform has initiated defamation proceedings against the Wall Street Journal.
The cryptocurrency industry’s leading exchange, Binance, finds itself facing renewed allegations following a Wall Street Journal investigation that claims the platform facilitated $850 million in transactions connected to a sanctioned Iranian financier across a two-year timeframe.
According to the investigation, Babak Zanjani—who faced renewed US sanctions in January—operated a cryptocurrency payment infrastructure utilizing Binance accounts. The report indicates that Zanjani’s enterprise, Zedcex, operated alongside accounts registered to his sister, a romantic partner, and a corporate director, all accessed through identical devices—a red flag that Binance’s internal security team identified as potential sanctions circumvention.
Compliance Warnings Allegedly Overlooked
Binance’s internal monitoring systems identified Tehran-based access to the Zedcex account in late 2024. The Journal’s report states that despite generating more than a dozen internal compliance alerts, the account continued functioning for over 15 months. Internal investigators allegedly recommended account termination and regulatory notification, but these recommendations were not implemented according to the report.
The investigation extends beyond the Zanjani-connected network. The Journal’s findings indicate that Iran’s central bank channeled $107 million in cryptocurrency into Binance accounts during 2025. Additionally, a foreign law enforcement body monitored approximately $260 million in transactions flowing directly between Binance accounts and Iranian entities throughout 2024 and 2025.
In 2023, Binance entered a guilty plea for violations related to anti-money laundering protocols and sanctions compliance, resulting in a historic $4.3 billion settlement. The agreement included commitments to comprehensive compliance system reforms. Despite these pledges, the Journal’s reporting suggests the alleged Iranian-linked transactions continued soon afterward.
Exchange Leadership Disputes Findings
In a public statement on X, Binance CEO Richard Teng strongly contested the allegations, characterizing the Journal’s reporting as “fundamentally inaccurate.” Teng asserted that the exchange has never knowingly processed transactions involving sanctioned parties, and that any flagged activity predated the imposition of US sanctions on those individuals.
Teng further stated that Binance had already initiated internal investigations into these matters prior to the Journal’s inquiry, and that critical facts the exchange provided were excluded from the published story. “Binance has zero-tolerance for illicit activity,” Teng emphasized.
The platform has launched defamation litigation against the Wall Street Journal, pursuing financial damages and requesting a jury trial. Binance communicated to Cointelegraph that it maintains ongoing cooperation with regulatory authorities and law enforcement agencies, while refuting awareness of a Department of Justice probe that was reported separately in March.
In February, the Journal had published separate allegations that Binance terminated an internal investigation into approximately $1 billion in flows to networks connected with Iranian proxy organizations. Binance disputed those claims as well, maintaining that its internal investigation remained active.
The US Department of the Treasury has cautioned financial institutions about potential repercussions for enabling transfers on Iran’s behalf, and has seized $344 million in cryptocurrency assets with Iranian ownership through its “Economic Fury” initiative.
Treasury representatives also convened with Binance leadership in March to address compliance issues related to the 2023 plea agreement, including transaction activity involving Iranian entities, according to sources with knowledge of the discussions.
