Federal prosecutors in the United States are investigating whether Binance, the world’s largest cryptocurrency exchange, knowingly allowed trading activity that violated American sanctions on Iran. The probe is being led by the Manhattan U.S. Attorney’s Office, with participation from the Justice Department’s Criminal Division in Washington, according to people familiar with the matter.

Authorities are reviewing the exchange’s compliance controls and determining whether Binance was aware of the transactions under scrutiny. The inquiry builds on earlier reports from March that the Justice Department was examining whether networks connected to Iran used the platform to evade U.S. sanctions. At that time, it remained unclear whether the focus was on Binance itself, its users, or both.

Company Response and Prior Statements

A Binance spokesperson said the firm maintains strict standards on sanctions compliance.

The statement did not confirm whether the company had received formal notice of the latest inquiry. In earlier comments, Binance said it was unaware of any Justice Department investigation related to Iran sanctions and disputed aspects of prior reporting as unsupported by credible evidence. The exchange has stated that its know-your-customer rules prohibit users residing or located in Iran from accessing its main platform.

An investigation does not establish wrongdoing and may conclude without charges.

2023 Settlement and Ongoing Oversight

The current scrutiny follows Binance’s November 2023 resolution with U.S. authorities. The exchange pleaded guilty to violations of the Bank Secrecy Act, operating an unregistered money-transmitting business, and the International Emergency Economic Powers Act. It agreed to pay a total criminal financial penalty of approximately $4.3 billion.

Prosecutors previously said Binance knowingly failed to install controls that would have blocked U.S. customers from trading with users in sanctioned jurisdictions, including more than $898 million in trades between U.S. users and individuals ordinarily resident in Iran from January 2018 through May 2022. The settlement required Binance to retain an independent compliance monitor for three years and to strengthen its anti-money-laundering and sanctions systems. Coordinated actions also involved the Financial Crimes Enforcement Network, the Office of Foreign Assets Control, and the Commodity Futures Trading Commission.

Related Civil Forfeiture Action

A separate civil forfeiture complaint filed on September 14 in the Southern District of New York seeks approximately $61 million in USDT held in 10 cryptocurrency addresses. Prosecutors alleged the funds represented proceeds from black-market Iranian crude oil and petroleum sales intended to finance Iranian government and military entities, including the Islamic Revolutionary Guard Corps.

The complaint named two Chinese companies, Blessed Trust and Hexa Whale, that used Binance trading accounts while handling the proceeds. It stated that a broader network of cryptocurrency actors laundered more than $1.5 billion in illicit oil proceeds. The filing does not accuse Binance itself of wrongdoing and notes that its allegations remain unproven until a court enters judgment.

Binance has said it offboarded the firms after law-enforcement contacts and internal reviews. According to the company, it removed Hexa Whale from its platform on August 13, 2025, and offboarded Blessed Trust in January 2026. Binance maintains that, to its knowledge, no account on its platform transacted directly with an Iran-based entity. An internal review cited by the exchange found that approximately $126.1 million eventually reached wallets linked to Iran after multiple blockchain hops, with as much as $24.1 million reaching wallets associated with the Islamic Revolutionary Guard Corps.

Compliance Measures Cited by Binance

The exchange has pointed to its compliance staffing and operational data. It reported that more than 1,500 people work in compliance-related functions, representing roughly 25 percent of its global workforce. Binance said it processed more than 71,000 law-enforcement requests during 2025 and that its exposure to four major Iranian cryptocurrency exchanges fell 97.3 percent over two years, from $4.19 million to $110,000.

U.S. senators have previously expressed interest in oversight of any Justice Department examination of Iran-linked activity on the platform. The existence of the current probe does not indicate that charges will be filed, and no timeline for a resolution has been disclosed.