Key Takeaways
- Binance claims a 97% drop in sanctioned exposure since early 2024, backed by internal data and extensive compliance investments.
- Fortune reported over $1 billion in Iran-linked Tether flows and firings of investigators who flagged the activity.
- Binance strongly denies violations or retaliation, calls the story false, and says departures followed unrelated policy breaches.
Binance, the world’s largest cryptocurrency exchange by trading volume, has made bold claims about dramatically reducing its exposure to sanctioned entities by nearly 97% since early 2024.
The announcement comes amid controversy surrounding alleged Iran-linked fund flows that reportedly exceeded $1 billion in Tether (USDT) transactions, sparking heated debate in the crypto community.
Bold Claims on Risk Management
On Feb. 23, Binance published a blog post titled “Setting the Record Straight.”
The blog detailed what it calls the most rigorous compliance measures in the industry.
The exchange claims it has outperformed its top-10 global peers in managing sanctions-related risks.
According to the blog, Binance’s exposure to sanctioned entities dropped from 0.284% of total trading volume in January 2024 to just 0.009% by July 2025—a nearly 97% decrease.
Direct interactions with four main Iranian crypto exchanges reportedly fell from $4.19 million in January 2024 to $110,000 by January 2026.
The exchange highlighted the scale of its compliance efforts.
Approximately 25% of its global workforce—over 1,500 employees and contractors—is dedicated to compliance.
Binance claims it spends hundreds of millions of dollars on advanced screening technologies, monitoring systems, and training programs.
Compliance investigations at Binance are handled independently and are not subject to interference from shareholders or executive leadership. While the Chief Compliance Officer provides reports to the management committee, compliance decisions are based on law and established procedures – not commercial considerations,” the exchange wrote.
In 2025 alone, Binance reported responding to more than 71,000 law enforcement inquiries worldwide, helping recover over $131 million in illicit cash and conducting over 160 training sessions for regulators and law enforcement.
Despite the decentralized nature of blockchain, the company said it investigates every credible threat, blocks suspicious accounts, and reports violations to authorities when necessary.
Founder Changpeng Zhao (CZ), now an advisor, emphasized the strength of Binance’s compliance program on X, saying it remains among the best in the industry.
“Some media use negative narratives (from fired employees). Binance uses data. Best compliance program in the industry, by far!” CZ wrote.
Iran-Linked Allegations Spark Controversy
Fortune’s exposé on Feb. 13 claimed that Binance compliance investigators uncovered over $1 billion in USDT transactions directed toward Iran-linked entities.
The transactions primarily occurred on the Tron blockchain between March 2024 and August 2025.
The report stated that at least five senior investigators—many with law enforcement backgrounds in Europe and Asia—raised concerns through official channels.
Starting in late 2025, several of these investigators were reportedly terminated, with sources linking the firings to the Iran-related findings.
Binance, however, denied any retaliation or wrongdoing.
CEO Richard Teng dismissed the allegations, and Zhao labeled them as FUD (fear, uncertainty, and doubt).
The allegations come against a backdrop of Binance’s regulatory history.
In November 2023, the exchange pleaded guilty to violating U.S. anti-money laundering and sanctions laws, paying a record $4.3 billion fine.
Zhao stepped down as CEO and served four months in prison.
Prosecutors had accused the exchange of prioritizing profits over compliance, enabling illegal fund flows from countries including Iran.
As part of the settlement, Binance agreed to ongoing oversight and promised “regulatory maturity.”
Post-2023 Compliance Overhaul
Binance insists it has significantly strengthened its compliance framework since 2023.
This includes upgrading sanctions screening, monitoring, and reporting tools while working closely with global regulators and law enforcement.
The exchange now operates under licenses in 20 jurisdictions and says it blocks high-risk accounts faster than ever.
Binance maintains that it runs a clean, compliant platform ready for the future.
The exchange vows to continue investing in compliance as it serves millions of users worldwide.
Whether these claims and counterclaims satisfy regulators and watchdogs remains to be seen.
For now, Binance’s assurances mark its latest effort to restore confidence in its operations amid one of the most high-profile compliance controversies in crypto history.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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