Binance is facing a difficult time after allegations emerged of internal layoffs linked to the discovery of potentially Iran-related transactions worth around $1.7 billion in cryptocurrencies. This situation highlights the growing challenges facing large crypto platforms when it comes to compliance, risk management and monitoring international financial flows. In a market already sensitive to regulatory movements, this case draws attention to the way in which major players manage the transparency and integrity of their operations.
In brief
- Internal investigators identified $1.7 billion sent to entities linked to Iran, through more than 1,500 accounts accessed from the country, according to the New York Times.
- Two companies, Hexa Whale and Blessed Trust, are at the heart of the suspicious flows, with $490 million and $1.2 billion respectively transferred to wallets associated with the Revolutionary Guard Corps.
- Binance strongly disputes the accusations, claims not to have violated any sanctions and claims to have reported the suspicious activities to the authorities.
- The conflict intensifies with the Wall Street Journal: Binance files a defamation lawsuit, accusing the media outlet of publishing a biased and inaccurate report on its compliance program.
Analysis of crypto transfers and transactions on Binance
After the recent revelations from Fortune, according to which more than a billion dollars would have passed through Binance to Iran and that five internal investigators would have been fired for having reported these movements to their management, a new investigation by the New York Times, published this Monday, provides additional elements.
It reveals that Binance's internal investigators identified, last year, more than 1,500 accounts viewed from Iran. Their analysis also shows that approximately $1.7 billion in cryptocurrencies flowed from two accounts on the platform to recipients linked to Iran, including some wallets associated with the Islamic Revolutionary Guard Corps.
Experts are particularly studying two specific companies. Hexa Whale, a Hong Kong-based company that, according to the New York Times, used Binance to transfer $490 million to cryptocurrency wallets linked to Iranian entities. According to the documents, an Israeli official told investigators that Hexa Whale financed terrorist organizations such as the Houthis, an Iran-backed militia that controls northern Yemen.
Then, the second company is called Blessed Trust. This financial service provider works closely with Binance. Specialists note that $1.2 billion in cryptocurrencies had passed from Blessed Trust's Binance account to entities linked to Iran. According to the article, they established links between these entities and cryptocurrency wallets controlled by Iran's Islamic Revolutionary Guard Corps.
Leung Ka Kui, director of Blessed Trust in Hong Kong, said, according to the same newspaper, that his company had never knowingly facilitated transactions violating sanctions or made payments to Iranian entities. He clarified that Blessed Trust's collaboration with Binance was limited to day-to-day operations, such as paying invoices or paying salaries.
Binance’s response to these allegations
In a statement sent Tuesday to The Block media, the Binance spokesperson claimed no investigators had been fired for reporting compliance issues or discussing possible sanctions violations.
He also clarified that the company strongly contested the conclusions put forward in the recent articles, stressing that the internal audit had not highlighted any violation of the laws or regulations relating to sanctions concerning the transactions mentioned. He added that Binance had detected and reported the activity deemed suspicious to the relevant authorities, believing that this demonstrated the effectiveness of its internal control systems.
The exchange platform also highlighted data showing a marked reduction in its exposure to Iranian entities. In a publication on X MondayBinance reported that it decreased its direct exposure to Iran's top four crypto platforms by 97.3% between January 2024 and January 2026, from approximately $4.19 million to $0.11 million.
Furthermore, she recalled that public blockchains operate in an open manner: any user can send funds to an address, making total elimination of exposure impossible. For his part, Changpeng Zhao, the founder of Binance, reacted in a message published on X, saying that certain media were relaying “negative stories” from former employees. He added that Binance had, in his opinion, the “best compliance program in the industry.”
Escalation of tensions between Binance and the Wall Street Journal
The confrontation between Binance and the Wall Street Journal intensifies as other US media outlets publish serious accusations. After reports surfaced of massive funds potentially linked to Iran flowing through the platform, CEO Richard Teng announced in a post on X that the company took legal action against the Wall Street Journalwhom he accuses of defamation.
Binance directly criticizes the WSJ for releasing an investigation that it says contains inaccurate and damaging information about its sanctions compliance program.
The law firm Withers Bergman LLP sends a letter to the media outlet formally contesting the report. Binance claims that the article distorts the reality of its compliance mechanisms, ignores responses provided before publication and falsely suggests violations of Iranian sanctions or obstruction of internal investigations.
The company also rejects the idea that it would have sanctioned employees who reported risks of non-compliance. According to Binance, the WSJ's treatment lacks impartiality and fuels a biased narrative at a time when several influential media outlets are publishing sensitive revelations about it.
Looking into the Future of Crypto Compliance
The BNB issuer case highlights that compliance issues in the crypto ecosystem continue to evolve rapidly, with increasing challenges in managing cross-border risks and international sanctions. The industry must clarify the rules and strengthen transparency mechanisms to meet the expectations of regulators, users and markets.
Platforms like Binance are likely to remain under increased scrutiny. Their ability to demonstrate the effectiveness of their compliance systems could influence public perception and how regulators approach the cryptocurrency sector in the years to come.
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