MV Capital - Binance Denies Role in $850 Million Iranian Sanctions Evasion Scheme

Wall Street Journal investigation claims accounts linked to sanctioned Iranian businessman Babak Zanjani moved $850 million through Binance. The exchange strongly rejects the allegations, stating many transactions predated sanctions and that it maintains strict compliance standards

WSJ Report Exposes Alleged Sanctions Evasion Network

A Wall Street Journal investigation has highlighted how cryptocurrency platforms are allegedly being used to bypass international sanctions against Iran. The report centers on Babak Zanjani, a businessman sanctioned by the US for supporting the Islamic Revolutionary Guard Corps (IRGC).

According to the investigation, Zanjani and his associates conducted around $850 million in transactions on Binance over two years. Internal documents reportedly showed repeated red flags, yet some accounts remained active. Foreign law enforcement officials estimated that roughly $425 million of this volume may have supported Iranian military and proxy operations.

Key Details from the WSJ InvestigationTransactions linked to the same devices used by Zanjani, his sister, partner, and business associates
Primary account active for at least 15 months into early 2026
Additional $1.7 billion in flagged flows, including Chinese oil payments to Iran
Zanjani's network used Binance alongside his own crypto operations

Binance Pushes Back Against the Claims

Binance has rejected the core findings of the report. CEO Richard Teng stated that the article contains "fundamental inaccuracies" and that many of the described transactions either occurred before sanctions were imposed or did not happen on the platform.

"Binance has zero-tolerance for illicit activity on its platform. We continue to strengthen our compliance framework and cooperate fully with global law enforcement agencies." Richard Teng, Binance CEO

The company noted it had already investigated the activity internally before the Wall Street Journal reached out. Binance has a record of improving its compliance systems following past regulatory issues, including the 2023 settlement involving founder Changpeng Zhao.

Who is Babak Zanjani?

Babak Zanjani has been a central figure in Iran's sanctions-evasion efforts for years. Sanctioned by the US Treasury since 2013, he was once sentenced to death in Iran on embezzlement charges, though the sentence was later commuted. He has publicly described himself as an "anti-sanction operator."

Iran has increasingly turned to cryptocurrency to keep financial channels open. Blockchain data suggests Iranian users conducted over $10 billion in crypto transactions in the past year, often tied to oil sales and support for regional groups.

Scale of Alleged Activity

Category	Amount
Zanjani-linked transactions on Binance	$850 million
Estimated military financing	$425 million
Additional flagged flows	$1.7 billion
Total Iranian crypto volume (2025)	Over $10 billion

Broader Implications for Crypto Regulation

The US Justice Department continues to examine Iran's use of Binance. Treasury officials have engaged with the exchange on these issues and recently froze Iranian crypto assets as part of ongoing pressure campaigns.

These cases show the difficulties crypto platforms face in preventing misuse while operating globally. Binance maintains it does not facilitate sanctioned activity and has taken legal action against the Wall Street Journal over previous coverage.

As governments increase oversight, the industry must improve monitoring while enabling legitimate use. The allegations around Zanjani and Binance illustrate the ongoing tension between digital finance and traditional sanctions enforcement.