13 hrs ago
Binance Faces US Criminal Probe Over Possible Iran Sanctions Violations
US prosecutors are examining whether Binance, a cryptocurrency exchange, allowed trades connected to Iran despite US sanctions.
Sanctions are rules that restrict certain business with targeted countries or people.
Investigators are looking at whether Binance knowingly allowed these trades or failed to stop them.
The investigation involves federal prosecutors in New York and the Justice Department.
Binance says it does not tolerate sanctions violations and is cooperating.
The company has faced major US enforcement action before.
In 2023, Binance admitted to several federal violations and agreed to pay more than $4.3 billion.
Prosecutors previously said more than $898 million in trades occurred between US users and people normally living in Iran.
The latest probe will examine whether Binance’s systems and controls were strong enough.
US prosecutors are investigating whether Binance violated sanctions on Iran through trading conducted on its platform.
The probe is being led by the Southern District of New York and the Justice Department’s criminal division.
Investigators are examining whether Binance knowingly allowed prohibited Iran-linked trading, according to reports.
Binance said it has zero tolerance for sanctions violations and is cooperating with law enforcement.
The investigation follows Binance’s 2023 guilty plea, more than $4.3 billion in penalties, and earlier allegations involving $898 million in US-Iran-linked trades.
- Who
- US federal prosecutors are investigating Binance, a cryptocurrency exchange; Binance says it is cooperating.
- What
- A criminal investigation is examining possible violations of US sanctions on Iran and whether Binance knowingly allowed prohibited trading.
- Where
- The investigation is being led by the US Attorney’s Office for the Southern District of New York and the Justice Department’s criminal division in Washington.
- When
- The investigation was reported on 22 September; related alleged trades occurred from January 2018 to May 2022, and Binance’s earlier resolution occurred in November 2023.
- Why
- Prosecutors are examining whether Binance’s systems and controls prevented Iran-linked trading that could violate US sanctions.
Prosecutors’ Concerns
Binance’s Position
Possible sanctions violations
Prosecutors’ Concerns
Investigators are examining whether Binance knowingly allowed trading that breached US sanctions and whether its controls adequately prevented Iran-linked activity.
Binance’s Position
Binance said it maintains a zero-tolerance approach to sanctions violations and is committed to identifying and shutting down bad actors.
Compliance controls
Prosecutors’ Concerns
The Justice Department previously said Binance knew it had users in comprehensively sanctioned jurisdictions, including Iran, and failed to prevent transactions between Iranian and US users.
Binance’s Position
Binance said it is fully cooperating with law enforcement; the company’s statement did not address the specific allegations in detail.
Key facts
- Investigation focus
- Possible violations of US sanctions on Iran and related trading activity through Binance.
- Lead investigators
- The US Attorney’s Office for the Southern District of New York and the Justice Department’s criminal division in Washington.
- Binance response
- The company said it has zero tolerance for sanctions violations and is cooperating with law enforcement.
- Earlier resolution
- Binance pleaded guilty in November 2023 to violations involving the Bank Secrecy Act, unregistered money transmission, and the International Emergency Economic Powers Act.
- Penalties
- Binance agreed to pay more than $4.3 billion in penalties and forfeiture.
- Earlier alleged trades
- Prosecutors said more than $898 million in trades occurred between US users and users ordinarily resident in Iran from January 2018 to May 2022.
- Former chief executive
- Changpeng Zhao stepped down as CEO as part of the 2023 resolution and later served nearly four months in prison.
Quotes
Binance
The cryptocurrency exchange under investigation by US prosecutors
“We fully cooperate with law enforcement, and we remain committed to rooting out and shutting down bad actors”
livemint.com
Sources
Related news
US Imposes Fresh Iran-Related Sanctions on Russia’s VTB Bank
US Plans New Bank Sanctions to Restrict Iran Transactions
New US Sanctions Target Iran’s Economy and Trading Partners
Bessent Warns Iran Supporters as US Escalates Sanctions Campaign
US Sanctions Turkish Bank in Escalating Pressure on Iran
US Moves to Cut Banque Misr UAE Branches From Dollars
US Lawsuit Deepens HDFC Bank Succession Concerns
US court delays Nikhil Gupta sentencing to November 20
Maduro and US Propose June 2027 Trial Start
U.S. Forces Arrest Venezuelan President Maduro
