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The world’s largest cryptocurrency exchange, Binance, is facing renewed scrutiny following an exclusive report published by Fortune on Friday that raises fresh questions about the exchange’s internal compliance controls and sanctions oversight.
According to multiple sources and internal documents reviewed by the publication, members of Binance’s compliance team identified transactions suggesting that entities linked to Iran received more than $1 billion through the platform between March 2024 and August 2025.
The transfers were reportedly conducted using the stablecoin Tether (USDT) on the Tron blockchain. If confirmed, such activity could represent potential violations of US sanctions laws.
The report states that after internal investigators documented their findings and submitted reports through official channels, at least five members of the compliance team were dismissed beginning in late 2025.
The individuals allegedly terminated included professionals with prior law enforcement experience in Europe and Asia. At least three of them had held senior roles within Binance, overseeing special investigations and global financial crime inquiries.
In addition to those firings, the report indicates that at least four other senior compliance officials have either resigned or been forced out over the past three months. The individuals cited by Fortune spoke anonymously, citing concerns about potential legal repercussions.
Robert Appleton, a partner at the law firm Olshan Frome Wolosky who previously led sanctions and Iran‑related cases at the US Department of Justice (DOJ), described the situation as surprising.
“That’s rather shocking that that happened under a monitorship with [Binance] internal investigators,” Appleton told the magazine, referencing the government oversight imposed on the company following earlier enforcement actions.
The latest controversy unfolds against the backdrop of Binance’s significant legal settlement in 2023. That year, the exchange pleaded guilty to violations of anti‑money laundering (AML) and know‑your‑customer (KYC) requirements.
As part of the resolution, the exchange’s co-founder Changpeng Zhao (CZ) stepped down as CEO, and Binance accepted government‑imposed monitorships intended to strengthen its compliance framework and usher in what the company described at the time as a new era of “regulatory maturity.”
Zhao has publicly rejected the claims raised in the recent report. In remarks addressing the article, he stated that he does not have detailed knowledge of the situation but argued that the narrative appears inconsistent.
The former executive suggested that, even if the allegations were accurate, an alternative interpretation could be that investigators were dismissed for failing to prevent the alleged transactions.
Zhao also questioned whether third‑party anti‑money laundering tools — similar to those used by law enforcement agencies — had identified the transactions in question. Although he no longer runs Binance, Zhao said that during his tenure, every transaction was screened through multiple external AML monitoring systems.
He further criticized reliance on unnamed sources, suggesting that anonymous accounts can be used to construct negative narratives, particularly if the individuals involved are dissatisfied or have ulterior motives.
Featured image from OpenArt, chart from TradingView.com
