The Justice Department has launched an inquiry into allegations that Iran used the Binance cryptocurrency exchange to skirt U.S. sanctions, according to company documents and people familiar with the matter. The investigation was opened after an internal review at Binance - which the exchange later closed - identified in excess of $1 billion in transaction flows to a network that funded Iran-backed terror groups.
Officials have reached out to several individuals believed to have knowledge of those transactions, requesting interviews and seeking evidence related to the flows, two people said. At this stage, it has not been confirmed whether the Justice Department's review is focused on the conduct of Binance itself or is limited to customers who used the platform for the transfers.
The probe brings renewed legal attention to the world’s largest cryptocurrency exchange following the presidential pardon granted in October to the company's founder, Changpeng Zhao, also known as CZ. The reopening of official scrutiny follows the termination of Binance's internal investigation that had traced significant funds through the platform.
Details remain limited. Company documents and the accounts of people familiar with the internal review form the basis for the allegations about the volume and destination of the transfers. Officials' outreach to individuals with direct knowledge suggests an active evidence-gathering effort, though the scope of potential targets - whether the platform or specific users - has not been publicly clarified.
The sequence of events is straightforward in the available record: an internal Binance probe identified substantial transfers linked to a network financing Iran-backed armed groups; that internal review was subsequently closed; and the Justice Department has since initiated contact with potential witnesses or sources of information as part of a formal examination.
Summary of facts:
- The Justice Department is investigating the use of Binance to evade U.S. sanctions.
- An internal Binance investigation reportedly traced more than $1 billion in flows to a network funding Iran-backed terror groups; that internal probe was closed.
- Authorities have contacted people with knowledge of the transactions; it is unclear whether Binance as a company is under scrutiny or only its customers.
- The inquiry follows the October pardon of Binance founder Changpeng Zhao.
The public record cited here is limited to what has been described in company documents and by people familiar with the matter. Where the Justice Department's review will lead - including whether it will allege institutional wrongdoing by the exchange or focus on individuals - has not been disclosed.