Binance Employees Uncover $1.7 Billion in Cryptocurrency Transfers to Iranian Entities
By David Yaffe-Bellany and Michael Forsythe | February 23, 2026
An internal investigation at Binance, the world’s largest cryptocurrency exchange, has revealed that approximately $1.7 billion in cryptocurrency was transferred to Iranian entities over the past year. These transfers involved more than 1,500 accounts on the platform and included connections to Iranian groups linked to terrorism, raising serious concerns regarding violations of international sanctions.
Investigations Reveal Potential Legal Violations
The findings came to light last year when a team of internal investigators at Binance discovered that two accounts on the platform had funneled large sums of cryptocurrency to Iran. One of these accounts was reportedly associated with a Binance vendor. The scale and nature of these transactions suggested possible breaches of global sanctions laws designed to prevent financing of terrorist activities.
After identifying the suspicious transactions, the investigation team promptly reported their findings to senior executives at Binance, according to internal records and other documents reviewed by The New York Times.
Response from Binance Raises Questions
In the weeks following the disclosure, Binance took disciplinary action against at least four employees involved in the investigation. The company cited "violations of company protocol" related to how these employees handled client data as the reason for their suspension or dismissal. This sequence of events has raised questions about the company’s commitment to addressing illicit activity on its platform.
These developments come despite Binance’s guilty plea in 2023 for violations of anti-money-laundering laws. At the time of that plea, Binance had vowed to crack down on illegal activity and enhance its compliance efforts by appointing more than 60 professionals with law enforcement and regulatory experience.
Political Context and Controversies
The revelations also emerged months before then-President Donald Trump granted a pardon to Changpeng Zhao, Binance’s founder, who had served four months in federal prison in 2024 due to his involvement in the company’s legal troubles. Notably, Binance has cultivated close business ties with the Trump family’s cryptocurrency venture, World Liberty Financial. Mr. Zhao was also recently a guest at a conference held at Mar-a-Lago, Trump’s private club in Palm Beach, Florida.
This intersection of cryptocurrency, international sanctions, and high-profile political relationships underscores the complex challenges Binance faces as it seeks to balance rapid business growth with regulatory compliance and legal scrutiny.
Ongoing Concerns and Industry Implications
As the largest venue for cryptocurrency trading worldwide, Binance’s actions are closely watched by regulators and industry observers. The company’s internal discoveries about Iran-linked transactions highlight continuing risks that cryptocurrency platforms may be exploited for illicit financial activities, despite increased efforts to enforce compliance.
The evolving situation at Binance serves as a reminder of the ongoing regulatory and ethical challenges that crypto exchanges confront in the rapidly changing global financial landscape.
This article is based on information reported by The New York Times.