Binance Allegedly Funded Iranian Entities Amidst Regulatory Scrutiny, Reports Reveal
By Dara Kerr, The Guardian | February 23, 2026
Binance, the world’s largest cryptocurrency exchange, may have inadvertently funded Iranian-backed groups with billions of dollars, according to recent investigative reports. Internal probes by Binance employees uncovered transactions totaling approximately $1.7 billion linked to entities associated with Iran, including Yemen’s Houthi militants, over the course of 2024 and 2025. ### Internal Investigation and Employee Fallout
The findings emerged during an internal investigation at Binance that identified over 1,500 accounts accessed from Iran. These accounts reportedly funneled large sums of money to groups considered adversarial by the United States government. Despite raising these red flags to the company’s executives, several employees involved in the inquiry were subsequently disciplined. Reports indicate that at least four investigators faced suspension or dismissal, accused of breaching company protocols, particularly concerning the handling of client data.
Binance has publicly denied these claims. In a statement provided to The Guardian, a spokesperson asserted that the company did not violate any sanctions laws related to the transactions in question. The statement emphasized that no staff members were terminated for raising compliance concerns or reporting possible sanctions violations.
Background: Changpeng Zhao and Binance’s Legal Challenges
Changpeng Zhao, commonly known as “CZ,” founded Binance in 2017, rapidly scaling it into the preeminent global cryptocurrency exchange. However, Zhao’s reputation has been marred by legal troubles. In 2023, he pleaded guilty to money laundering charges, resulting in a four-month prison sentence and a $50 million fine. As part of his plea agreement, he stepped down from his leadership role and was barred from involvement in Binance’s business operations.
In an unexpected political development, former President Donald Trump pardoned Zhao in October 2025. Trump minimized the severity of Zhao’s offenses, asserting that the actions were not criminal and characterizing Zhao as a victim of persecution by the Biden administration. Trump’s family crypto enterprise, World Liberty Financial, has maintained business ties with Binance, and Zhao recently attended a conference at Trump’s Mar-a-Lago estate.
Binance’s Legal Settlements and Compliance Commitments
Binance itself entered into a settlement in 2023, agreeing to pay criminal fines totaling nearly $1.81 billion and an additional forfeiture payment of $2.51 billion to resolve multiple criminal charges. The exchange committed to enhancing its internal monitoring systems and intensifying efforts to prevent illicit financial activities, specifically citing Iranian customers as a focus for compliance enforcement.
Despite these commitments, the recent disclosures about Iranian-linked transactions raise questions about the effectiveness of Binance’s measures to prevent sanctioned parties from exploiting its platform.
Geopolitical Implications
The Iranian entities implicated in these transactions are reportedly among the foreign adversaries that the Trump administration had contemplated targeting with military actions. The revelation that Binance may have facilitated financial flows to these groups complicates ongoing diplomatic and security considerations.
Requests for comment from the White House have not yet been returned.
Key Topics: Binance, Cryptocurrencies, Iran, Donald Trump, Compliance, Sanctions, Houthi Militants
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