The Wall Street Journal reports: The U.S. Department of Justice is investigating Binance for illegally transferring over $1 billion to Iran

The Wall Street Journal exclusively reports that the U.S. Department of Justice is investigating how Iran is using Binance to evade U.S. sanctions. The investigation focuses on over $1 billion in funds flowing to terror networks supported by Iran, including the Houthi rebels in Yemen. It is understood that Binance previously initiated an internal investigation, which was halted after investigators flagged this batch of funds. The investigators involved were also suspended.

(Background: Former President Trump claimed the Iran war was nearly over, and Bitcoin needs to hold $70,000. What do technical charts say?)

(Additional context: After forty years of sanctions, how is Iran rebuilding its financial channels through crypto?)

The U.S. Department of Justice is investigating issues related to Iran using Binance to bypass sanctions. According to an exclusive report by The Wall Street Journal, DOJ officials have proactively contacted multiple insiders to seek interviews and gather evidence. The WSJ notes that it is currently unclear whether the investigation targets Binance itself or specific users on the platform.

The case originated from an internal investigation at Binance, which was halted. Company documents and insiders reveal that Binance employees traced over $1 billion flowing to a network financing proxy armed groups supporting Iran, including the Houthi rebels in Yemen.

Shortly after investigators reported suspicious funds totaling $1.7 billion—coming from Chinese clients and flowing into Iranian digital wallets used to fund proxy armed groups—in November last year, the investigation was stopped.

Of this $1.7 billion, more than $1 billion came from a Binance partner, Hong Kong-based payment company Blessed Trust. Binance stated that after ongoing internal investigations, Blessed Trust’s accounts were closed earlier this year.

Financial Regulators Also Involved

In addition to the DOJ, the U.S. Treasury’s designated Binance compliance regulator has recently requested information regarding Iran-related transactions, including detailed data on Blessed Trust.

According to Binance’s 2023 plea agreement with U.S. authorities, the regulator’s oversight will continue until 2029.

A Binance spokesperson previously emphasized that the exchange “absolutely has not directly transacted with any sanctioned entities,” and stated that the company “discovered a complex financial activity pattern spanning multiple jurisdictions,” with Iran-related activity identified only after Binance’s investigation and cooperation with law enforcement. Binance also said that subsequent investigations found only $24 million entered wallets linked to the Islamic Revolutionary Guard Corps (IRGC), not the over $1 billion reported by others.

When asked by The Wall Street Journal, the U.S. Department of Justice declined to comment publicly, the Treasury did not respond to media inquiries, and Iranian authorities also did not comment on the matter.