Key Highlights
- Binance denied claims that it allowed transactions linked to Iranian entities and called the media reports “demonstrably false”.
- Two flagged entities, Hexa Whale and Blessed Trust, were removed after internal investigations, and no account transacted directly with Iran.
- The exchange said it has over 1,500 compliance staff, strict KYC checks, and has helped authorities seize over $752 million in the past three years.
Crypto exchange Binance has denied claims that it facilitated transactions worth about $1.7 billion connected to Iran.
The company sent a letter on March 6, 2026, to the U.S. Senator Richard Blumenthal and the Senate Permanent Subcommittee addressing allegations that the exchange broke sanctions and helped launder illicit funds
The inquiry mentioned reports from The Wall Street Journal, The New York Times, and Fortune, which said some accounts on Binance moved funds linked to Iran and Russia’s shadow oil trade.
Binance says the allegations are false
In its letter, Binance said these reports are “demonstrably false” and do not show the truth about its compliance program. The company explained that it has strict Know Your Customer (KYC) checks, screens users for sanctions, and does not allow anyone in Iran to use its platform.
Binance further explained that its system uses over 25 monitoring tools to watch transactions, check for unusual activity, and make sure users follow the rules.
Binance investigations flagged major entities
The inquiry focused on two Binance partners, Hexa Whale and Blessed Trust, reported to have indirect links to wallets connected to Iran. Binance said it found these risks after law enforcement contacted them in 2025.
The company investigated the cases, reviewed transaction records, and gave information to authorities. Hexa Whale was removed from the platform in August 2025, and Blessed Trust in January 2026. Binance added that no account on its platform directly sent money to Iran
Binance also explained that it has invested hundreds of millions of dollars in compliance systems and now has more than 1,500 staff worldwide who work on sanctions enforcement, stopping money crimes, and preventing terrorist financing.
In 2025, the company helped law enforcement with over 71,000 requests and assisted in seizing over $752 million linked to illegal activity over the past three years. In addition, data from blockchain analytics showed that exposure to risky wallets dropped from 0.284% in January 2024 to 0.009% by July 2025. Exposure to the four main Iranian crypto exchanges also went down 97%, from $4 million to $110,000.
Binance clears the misunderstanding
The company denied claims that it had identified 2,000 Iran-linked accounts, calling the number false. It also said anyone trying to bypass rules using a VPN breaks its terms of service.
Binance confirmed that its recent staff changes and firing of one staff member were unrelated to compliance issues; the employee was dismissed for sharing internal user information, which broke privacy rules.
This response comes as cryptocurrency exchanges face more attention from regulators. Moreover, the exchange had previously settled in 2023 for anti-money laundering and sanctions violations, which forced it to pay a $4.3 billion fine.
In addition to that, the founder, Changpeng Zhao also served a short prison sentence and was later pardoned by Donald Trump. By sending this letter, Binance wants to show it is transparent and serious about following the rules.
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