Iran allegedly continued moving large sums of money through the world's largest cryptocurrency exchange Binance despite years of sanctions enforcement and regulatory scrutiny, according to a new report that cited internal compliance documents.
Documents reviewed by The Wall Street Journal indicate that a network tied to Iranian businessman Babak Zanjani processed roughly $850 million in transactions through Binance through late 2025.
Internal Binance investigators reportedly assessed that portions of the network were linked to financing activities benefiting Iran's government and military institutions. Experts cited in the report estimated that about half of the funds may have supported military-related operations. The outlet said the records showed Zanjani's primary account remained active for months after being flagged internally.
The allegations come as Iran remains under extensive U.S. sanctions and faces heightened international scrutiny over its financial networks amid conflicts involving Iranian-backed groups across the Middle East. U.S. officials have repeatedly accused Tehran of using complex international financial structures, shell companies and alternative payment systems to bypass sanctions and fund regional allies and military activities.
Binance's own compliance teams identified suspicious activity connected to the network, yet some accounts remained operational well into 2025 and early 2026. The report said Zanjani, who has previously described himself as an "anti-sanction operator," was connected to a broader network that had already been linked to approximately $1.7 billion in additional cryptocurrency transactions involving Iranian entities.
Earlier reporting by The New York Times found that Binance investigators had identified more than 1,500 accounts accessed from Iran and traced approximately $1.7 billion flowing from Binance accounts to Iranian-linked entities during 2024 and 2025. The newspaper reported that investigators raised concerns internally after uncovering the transactions and possible sanctions-related violations.
Binance disputed key aspects of the allegations. In a statement cited by The Wall Street Journal, the company said the overwhelming majority of the transactions referenced in the reporting did not involve the Binance platform. The exchange also said it does not permit sanctioned individuals or wallets to transact on its systems and takes action when such accounts are identified.
Binance Chief Executive Richard Teng rejected the latest allegations, stating that transactions highlighted in the reporting occurred before the relevant individuals were sanctioned and that the company maintains a zero-tolerance approach to illicit activity, according to statements reported by industry and financial media. "The transactions referenced by the WSJ all occurred before the relevant individuals were designated under sanctions," Teng wrote on X.
The latest revelations have attracted attention in Washington. Democratic Sen. Richard Blumenthal opened an inquiry earlier this year after reports of Iran-linked activity surfaced, arguing that Binance appeared to have ignored warnings from its own investigators. A letter released by Blumenthal's office sought information about the company's compliance practices and its handling of accounts linked to sanctioned entities.
The scrutiny comes less than three years after Binance reached a landmark settlement with U.S. authorities. In 2023, the exchange agreed to pay more than $4.3 billion and admitted to violations involving anti-money-laundering and sanctions laws. Co-founder Changpeng Zhao also pleaded guilty to related compliance failures and later served a prison sentence.
The allegations also arrive amid broader concerns about cryptocurrency's role in sanctions evasion. A recent Reuters investigation reported that Iran's largest crypto exchange, Nobitex, moved billions of dollars through blockchain networks including BNB Chain and Tron, systems that have been scrutinized by analysts examining financial flows connected to sanctioned Iranian entities.
