Binance CEO Richard Teng rejected fresh allegations from the Wall Street Journal claiming $850 million in Iran-linked transactions flowed through the exchange to Iran's Islamic Revolutionary Guard Corps (IRGC). The WSJ report surfaced amid ongoing scrutiny of the world's largest crypto exchange over sanctions compliance.
Teng pushed back hard against the findings, arguing Binance maintains robust anti-money laundering protocols and actively blocks transactions tied to sanctioned entities. The exchange contends it cooperates fully with regulators and law enforcement globally.
The accusation lands as Binance navigates multiple regulatory headwinds. The exchange operates under a 2023 U.S. Department of Justice settlement that imposed a $4.3 billion fine over historical AML failures and sanctions violations. That deal required sweeping compliance upgrades and independent monitoring.
WSJ investigations into Binance have consistently targeted the exchange's historical ability to process transactions from high-risk jurisdictions. Previous reports documented flows from North Korea, Russia, and other sanctioned regions before the 2023 settlement forced operational changes.
Iran sanctions enforcement remains a top priority for the U.S. Treasury Department's Office of Foreign Assets Control (OFAC). Any exchange found facilitating IRGC transactions faces severe penalties, license revocation, and criminal prosecution. The allegations carry particular weight given Binance's track record of compliance failures in this area.
Teng's denial suggests Binance intends to fight the characterization or dispute the WSJ's methodology. The exchange may argue transactions were flagged and blocked, or that users misrepresented origins. Still, the reputational damage compounds pressure on Binance's U.S. operations and regulatory relationships.
This report reflects persistent concerns that major centralized exchanges struggle to fully police sanctions evasion, particularly through layer-by-layer obfuscation. Binance's size and global reach create enforcement complexity that continues attracting regulatory attention.