Binance, the cryptocurrency exchange, is currently facing serious allegations regarding compliance failures. These issues have surfaced after a past incident led to a significant $4 billion penalty and the imprisonment of its founder, Changpeng Zhao (CZ), in 2024.
Allegations of Sanction Violations
A recent report from Fortune claims that Binance terminated investigators who uncovered evidence of $1 billion worth of transactions with sanctioned Iranian entities in 2025. In response, CZ labeled these accusations as “paid FUD,” suggesting they stem from a disgruntled ex-employee.
CEO Responses
Richard Teng, the current CEO of Binance, criticized the report as “irresponsible.” He emphasized that compliance is an ongoing challenge amidst the rise of sophisticated methods employed by malicious actors to bypass regulations.
Ongoing Compliance Monitoring
Following a plea deal in 2023, Binance is under a three-year compliance monitoring arrangement by the U.S. Department of Justice (DoJ), set to conclude in 2027. However, the company has been scrutinized for reported Iranian transactions that allegedly went undetected.
The Surge in Iranian Crypto Activity
In 2025, TRM Labs, a blockchain security firm, revealed that Iran observed over $10 billion in cryptocurrency transactions, with half of these connected to the Islamic Revolutionary Guard Corps (IRGC). This spike in crypto activity was fueled by ongoing geopolitical tensions and local unrest.
Concerns from U.S. Authorities
- The U.S. Treasury expressed concern over Iran’s increasing cryptocurrency transactions and possible sanctions evasion.
- It remains uncertain whether the Treasury or DoJ will investigate the alleged compliance breaches by Binance.
Stability Amidst Market Volatility
Despite the allegations, Binance has experienced relative stability. The exchange did face some withdrawals recently due to market fluctuations, but investor confidence appears intact. Its Bitcoin reserves increased from 651,000 BTC to 666,000 BTC, indicating a stable customer base.
Performance of Binance Token
Binance’s native token, BNB, has shown resilience, although it struggled to maintain a value above $600 amid a broader market downturn.
Conclusion
Changpeng Zhao reiterated his denial of the Iranian allegations, dubbing them “paid FUD.” He also remarked on the exchange’s investment in various anti-money laundering (AML) measures to enhance compliance.
