Binance Employees Uncover $1.7 Billion in Cryptocurrency Transfers to Iranian Entities
By David Yaffe-Bellany and Michael Forsythe
Published February 23, 2026
In a significant development highlighting ongoing challenges within the cryptocurrency industry, internal investigators at Binance—the world’s largest cryptocurrency exchange—discovered that approximately $1.7 billion in crypto assets had been transferred to Iranian entities, including those linked to terrorist groups. This finding raises serious questions about potential violations of global sanctions and the effectiveness of Binance’s compliance measures.
Discovery of Iranian-linked Transactions
According to company records and documents reviewed by The New York Times, Binance’s internal team found that over the previous year, individuals in Iran had gained access to more than 1,500 accounts on the Binance platform. More concerning was the fact that funds had flowed from two specific Binance accounts to Iranian entities with suspected ties to terrorism. One of these accounts was reportedly held by a Binance vendor.
Upon uncovering these transactions, the investigators promptly reported their findings to top-level executives within Binance. The discovery underscored ongoing compliance risks, especially given Binance’s earlier legal troubles.
Employee Suspensions Follow Investigation
Shortly after the internal investigators made their findings known, Binance suspended or fired at least four employees involved in the probe. Sources familiar with the situation, as well as company documents, reveal the company cited “violations of company protocol” linked to how these employees handled client data. The firings and suspensions occurred within weeks of the investigation being reported upward.
This sequence of events has raised concerns about the company’s treatment of employees who report potential legal violations and about the transparency of its anti-money laundering (AML) efforts.
Continuation of Compliance Challenges
This latest revelation comes after Binance pleaded guilty in 2023 to breaking anti-money laundering laws, acknowledging failings in its oversight of illicit activity on the platform. At that time, Binance vowed to strengthen its compliance infrastructure, announcing the recruitment of more than 60 employees with backgrounds in law enforcement and regulatory agencies to combat fraud, money laundering, and other abuses.
However, the internal findings related to Iranian transactions suggest that illicit activity has persisted on the platform despite these enhanced measures.
Political and Business Connections
The timing of the Binance investigation is notable, occurring months before former President Donald Trump granted a presidential pardon to Binance’s founder, Changpeng Zhao. Zhao had served four months in federal prison in 2024 related to the company’s violations.
Additionally, ties between Binance and the Trump family have drawn scrutiny. Trump’s crypto startup, World Liberty Financial, has forged business relations with Binance. Earlier in 2026, Zhao attended a conference at Mar-a-Lago, Trump’s private club in Florida, highlighting the intersection of cryptocurrency, politics, and business.
Industry Implications
The Binance revelations illustrate ongoing regulatory and ethical challenges in the fast-evolving cryptocurrency landscape. Exchanges like Binance play a critical role in monitoring illicit financial flows, but these developments indicate that even major platforms are vulnerable to becoming conduits for sanctioned entities and other illicit actors.
Regulators globally continue to tighten oversight of crypto markets, emphasizing transparency, accountability, and compliance with international sanction regimes. The Binance case serves as a cautionary tale for the industry and underscores the need for rigorous internal controls to prevent abuse.
This article is based on investigative reporting by The New York Times.