In a firm rebuttal to recent media reports, Binance has categorically denied allegations that it terminated or suspended compliance staff for uncovering potentially problematic cryptocurrency transactions linked to Iran. The world’s largest crypto exchange maintains that no sanctions violations occurred and that any personnel changes stemmed from unrelated breaches of internal policies, not from efforts to suppress legitimate concerns.
The controversy erupted following investigative pieces published in mid-February 2026. According to various reports, a team of internal investigators—several with backgrounds in law enforcement across Europe and Asia—identified substantial flows of funds through the platform between March 2024 and August 2025.
One analysis highlighted more than $1 billion in Tether (USDT) stablecoin transactions routed via the Tron blockchain to entities with ties to Iran.
A separate account of the findings pointed to approximately $1.7 billion moving from just two Binance accounts, one reportedly belonging to a company vendor, toward Iranian parties potentially connected to terrorist organizations.
These movements were said to raise red flags under international sanctions regimes.
Investigators also allegedly discovered that users in Iran had accessed over 1,500 accounts on the exchange during the period.
The team documented their discoveries in internal reports and escalated them to senior leadership.
However, within weeks, at least four to five members of the compliance unit were reportedly fired or placed on suspension.
Sources suggested the departures followed the surfacing of these findings, prompting questions about whether the actions reflected retaliation amid Binance’s ongoing regulatory obligations.
Binance pushed back sharply against the narrative. Co-CEO Richard Teng addressed the claims directly, stating:
“No sanctions violations were found, no investigators were fired for raising concerns, and Binance continues to meet its regulatory commitments.”
The company emphasized that an internal review, supported by external legal counsel, uncovered no evidence of breaches related to the referenced activity.
It further clarified that certain employees left after violating protocols around customer data protection and confidentiality—standard grounds for disciplinary measures, according to the exchange.
Binance stressed its commitment to proper compliance, noting heavy investments in advanced screening tools, real-time blockchain analytics, and collaboration with global law enforcement.
The firm also highlighted a claimed 97% reduction in exposure to sanctioned entities and high-risk jurisdictions since January 2024.
This latest episode unfolds against a complex backdrop for Binance.
In 2023, the exchange pleaded guilty to multiple violations of U.S. anti-money laundering, know-your-customer, and sanctions laws, resulting in a landmark $4.3 billion settlement with the Department of Justice.
Founder Changpeng Zhao stepped down as CEO and served a four-month prison sentence before receiving a presidential pardon in late 2025.
As part of the resolution, Binance agreed to enhanced oversight, including a monitorship, and pledged to strengthen controls against illicit finance.
Critics argue the reported events raise fresh doubts about the platform’s post-settlement reforms, especially given the timing shortly after the pardon.
Supporters, however, point to Binance‘s track record of assisting authorities in thousands of cases annually and recovering significant illicit funds.
Industry observers note that crypto exchanges continue to navigate a challenging environment where decentralized technology collides with strict geopolitical sanctions, particularly involving regions like Iran.
As regulatory scrutiny persists and market participants demand greater transparency, Binance’s denial underscores the high stakes involved. The exchange insists its core compliance capabilities remain intact and that it remains a reliable partner in the fight against financial crime.
