U.S. Prosecutors Investigate Binance Over Possible Iran Sanctions Violations
U.S. federal prosecutors are investigating whether Binance may have violated U.S. sanctions on Iran by allowing certain trading activity on its cryptocurrency platform, according to reporting by Reuters and Bloomberg on September 22.
Reuters reported that the investigation is being led by prosecutors from the U.S. Attorney’s Office for the Southern District of New York together with the Justice Department’s Criminal Division in Washington. Investigators are examining whether Binance knowingly permitted trading that breached U.S. sanctions. The transactions under review have not been publicly identified, and the existence of an investigation does not establish that Binance committed a sanctions violation.
Binance said it has a zero-tolerance approach to sanctions violations, cooperates with law enforcement and remains committed to identifying and shutting down bad actors. The Justice Department and the Manhattan U.S. Attorney’s Office declined to comment on the reported investigation.
Iran-linked funds have recently appeared in a separate Binance-related forfeiture case
The reported investigation comes shortly after the Southern District of New York filed a separate civil forfeiture complaint on September 14 seeking approximately $61 million in cryptocurrency allegedly derived from black-market sales of sanctioned Iranian crude oil and petroleum products.
According to that complaint, two Chinese companies, Blessed Trust and Hexa Whale, allegedly used trading accounts at Binance to launder proceeds from Iranian oil sales and funnel funds to the Government of Iran, its agents or proxies. The Justice Department said Blessed Trust allegedly provided fiat-to-cryptocurrency on-ramp services, including through U.S.-based cryptocurrency issuers. The forfeiture allegations have not been proven; a civil forfeiture complaint is an allegation until a court enters judgment for the United States.
Binance’s earlier U.S. sanctions and AML resolution
The new scrutiny follows Binance’s 2023 criminal resolution with U.S. authorities. Binance pleaded guilty to violations involving the Bank Secrecy Act, money-transmitting registration requirements and the International Emergency Economic Powers Act and agreed to pay approximately $4.3 billion in penalties.
In that case, the Justice Department said Binance had failed to implement controls preventing U.S. customers from transacting with users in sanctioned jurisdictions. Between January 2018 and May 2022, Binance admitted that its conduct caused more than $898 million in trades between U.S. users and users ordinarily resident in Iran. The resolution also required compliance remediation and an independent compliance monitor.
The reported 2026 investigation is a separate inquiry. Public reporting has not established whether it will result in charges or another enforcement action.
Sources
- Reuters, September 22, 2026: U.S. prosecutors investigate Binance over possible Iran sanctions violations.
- U.S. Attorney’s Office, Southern District of New York, September 14, 2026: civil forfeiture complaint seeking approximately $61 million in cryptocurrency linked to alleged Iranian black-market oil sales.
- U.S. Department of Justice, November 21, 2023: Binance guilty plea and $4.316 billion resolution involving AML, money-transmission and sanctions violations.
