[Alpha Biz= Kim Jisun] The U.S. Department of Justice (DOJ) is investigating allegations that the world’s largest cryptocurrency exchange Binance may have been used to evade sanctions on Iran, the Wall Street Journal (WSJ) reported on March 11.
According to the report, the probe began after internal documents and witness statements indicated that an internal Binance investigation into more than $1 billion in transactions linked to networks supplying Iran-backed terrorist groups was halted.
Officials said the DOJ is collecting testimony and evidence from individuals familiar with the transactions. It remains unclear whether the investigation targets potential wrongdoing by Binance itself or traders suspected of sanctions evasion, the WSJ said.
Earlier reporting by The New York Times alleged that about 1,500 Binance accounts were accessed by Iranian nationals over the past year, with roughly $1.7 billion in funds flowing to Iranian entities linked to terrorist organizations.
According to the NYT, Binance’s internal investigative team identified the suspicious transactions and reported them to senior management. However, several employees involved in the investigation were later dismissed or suspended, sources told the newspaper.
Binance, founded in 2017 in Shanghai by Chinese-Canadian entrepreneur Changpeng Zhao, has grown into the world’s largest cryptocurrency trading platform.
Zhao previously faced charges from the U.S. Securities and Exchange Commission (SEC) and the Justice Department over alleged money-laundering violations and agreed to pay $4.3 billion in penalties after pleading guilty.
However, U.S. President Donald Trump pardoned Zhao in October last year.
In response to the WSJ report, Binance said it has never conducted direct transactions with sanctioned entities. The company added that accounts linked to Iran were identified through internal investigations and handled in cooperation with law enforcement authorities.
Binance also denied firing investigators over compliance concerns, saying employees who left the company resigned for personal reasons, the WSJ reported.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
