Crypto Exchange Binance Allegedly Funded Iranian Entities, Internal Report Reveals
By Dara Kerr, The Guardian – February 23, 2026
Binance, the world’s largest cryptocurrency exchange, is facing scrutiny after reports emerged that the platform may have facilitated billions of dollars worth of transactions benefiting Iranian-backed groups, including Yemen’s Houthi militants. According to investigations conducted internally within the company, at least two accounts reportedly moved approximately $1.7 billion to such entities throughout 2024 and 2025. ### Investigation Uncovers Widespread Iranian Access
The revelations first came to light following a detailed internal inquiry at Binance. Investigators found that individuals in Iran had accessed over 1,500 accounts on the cryptocurrency platform. This activity allegedly enabled significant funds to flow to groups designated as threats by various governments. The scale and nature of these transactions prompted concern among Binance’s compliance team.
The information was initially reported by the New York Times and further detailed by the Wall Street Journal, highlighting the seriousness of the findings.
Internal Response and Employee Discipline
Employees involved in uncovering the transactions claim they alerted Binance’s senior executives to the evidence. However, these whistleblowers say that instead of addressing the concerns, the company disciplined some investigators. At least four employees were reportedly suspended or terminated on grounds related to “violations of company protocol” concerning the handling of client data.
Binance, however, has denied that any disciplinary actions were connected to raising compliance issues. In a statement to The Guardian, a spokesperson affirmed, “No investigator was dismissed for raising compliance concerns or for reporting potential sanctions issues.” The company further stated that it “did not violate sanctions laws in respect of the transactions described.”
Background on Binance and Founder Changpeng Zhao
Founded in 2017 by Changpeng Zhao, Binance quickly rose to dominate the cryptocurrency exchange market. Despite its success, Zhao and Binance have faced significant legal challenges. In 2023, Zhao pled guilty to money laundering charges, resigned from Binance, and was sentenced to four months in prison. Alongside his plea, Zhao agreed to pay a $50 million fine and was prohibited from participating in Binance’s operations.
In a controversial move, former President Donald Trump pardoned Zhao in October 2025, dismissing the gravity of his offenses. Trump stated the founder’s actions “were not even a crime” and described the prosecution as politically motivated. Zhao’s pardon followed close ties between Binance and Trump’s family crypto business, World Liberty Financial, including Zhao’s appearance at a conference at Trump’s Mar-a-Lago estate earlier this month.
Binance’s Legal Settlements and Sanctions Compliance
Binance itself pled guilty in 2023 to criminal charges tied to inadequate oversight of its platform. The company agreed to pay fines exceeding $1.8 billion and a forfeiture order of $2.51 billion. The settlement also included commitments to implement stringent monitoring measures to deter illicit transactions, especially those connected to countries under sanctions such as Iran.
Notably, the newly revealed Iranian transactions occurred within Binance’s system before Zhao’s presidential pardon, suggesting lapses in enforcement even amid heightened regulatory scrutiny.
Geopolitical Implications and Government Response
The implicated Iranian entities reportedly include groups considered adversarial by the United States, which under the Trump administration had contemplated military action against such targets. The disclosure adds complexity to ongoing US-Iran tensions and raises questions about cryptocurrency’s role in circumventing international sanctions.
The White House has yet to issue a comment on the matter.
Topics: Binance, Cryptocurrencies, Iran, Donald Trump, Trump administration
For ongoing updates on this developing story, stay tuned to The Guardian.