Binance Employees Uncover $1.7 Billion in Cryptocurrency Transfers to Iranian Entities
February 23, 2026 — By David Yaffe-Bellany and Michael Forsythe, The New York Times
A group of internal investigators at Binance, the world’s largest cryptocurrency exchange, made a startling discovery last year: over $1.7 billion in cryptocurrency had been sent through the platform to Iranian entities linked to terrorist groups, potentially violating global sanctions.
Discovery of Suspicious Activity
According to company records and documents obtained by The New York Times, Binance employees found that more than 1,500 accounts connected to people in Iran had been active on the platform over the previous year. Large sums of cryptocurrency—stemming from just two Binance accounts—flowed to Iranian organizations believed to have ties with terrorist operations. Notably, one of these accounts was held by a Binance vendor itself.
The investigators, upon uncovering these transactions, promptly reported their findings to Binance’s top executives as part of their internal compliance responsibilities.
Company Response and Employee Suspensions
However, within weeks of raising these concerns, at least four employees involved in the investigation were either fired or suspended. The company cited violations of internal protocols, particularly related to the handling of client data, as justification for these employment actions. These developments suggest a complex internal dynamic over managing and responding to potential legal violations on Binance’s platform.
Ongoing Compliance Challenges
This revelation highlights continuing compliance challenges within Binance, coming after the company pleaded guilty in 2023 to breaking anti-money-laundering laws. During that time, Binance had vowed to intensify efforts to detect and prevent illicit activity on its platform. It also had hired over 60 employees with prior law enforcement or regulatory experience in an effort to strengthen oversight.
Despite these promises, the internal warnings about Iranian-linked transactions surfaced last year, suggesting that difficulties in fully curbing illicit financial flows persist.
Wider Context and Implications
These disclosures emerge against a backdrop of significant political and legal developments. In 2024, Binance’s founder, Changpeng Zhao, served four months in federal prison related to the company’s prior law violations before receiving a presidential pardon from former President Donald Trump. Moreover, Binance has developed close business relationships with Trump’s family cryptocurrency venture, World Liberty Financial, and Mr. Zhao recently appeared as a guest at a conference held at Trump’s Mar-a-Lago club in Florida.
The extent of cryptocurrency’s ability to move large sums across global borders rapidly and anonymously continues to pose regulatory and geopolitical risks. The Binance case underscores the challenges exchanges face in balancing the promotion of digital asset markets with the imperative to prevent transactions that may fund terrorism or violate sanctions.
Looking Forward
Binance’s internal discoveries and subsequent personnel decisions raise questions about the future of regulatory oversight in the cryptocurrency sector. Observers will be watching how the exchange addresses ongoing compliance issues, particularly with regard to jurisdictions subject to stringent sanctions like Iran.
As the cryptocurrency market matures, the pressure on platforms such as Binance to enforce global financial laws and enhance transparency is expected to increase. How the company responds to these challenges could serve as a bellwether for the industry at large.
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