Federal prosecutors, including the U.S. Department of Justice, are investigating whether Binance knowingly allowed Iran-linked entities to trade on its platform to circumvent U.S. sanctions, according to Bloomberg. The investigation marks an escalation in the U.S. government’s efforts to prevent Iran from using cryptocurrency to evade financial restrictions.
The probe comes as the Treasury Department and DOJ have intensified enforcement actions targeting Iranian cryptocurrency activity. In mid-September, the DOJ announced the seizure of $61 million in cryptocurrency allegedly laundered through Binance by Chinese entities from black-market sales of sanctioned Iranian oil. Days later, the Treasury Department designated BitBank, an Iranian crypto exchange, as part of Operation Economic Outcast.
Treasury Secretary Scott Bessent highlighted the scope of frozen Iranian crypto holdings in recent weeks. “The Iranian regime’s crypto had been frozen, mostly in the form of Tether’s USDT stablecoin,” Bessent stated. Bitcoin, by contrast, cannot be frozen, making it a preferred asset for Iran’s sanctions evasion efforts.
Iran’s Cryptocurrency Strategy
Iran has escalated its use of bitcoin and other cryptocurrencies to circumvent U.S. sanctions. Earlier in 2026, Iran launched a bitcoin-backed insurance service for its country’s shipping companies. The Financial Times reported that Iran has been using bitcoin to settle cross-border transactions through Iranian crypto exchanges after the central bank advised citizens to help the economy.
The U.S. began targeting crypto wallets linked to the Iranian regime in April 2026, signaling a broader push to disrupt Iranian access to digital assets.
Binance’s History and Current Status
Binance Holdings Ltd., the world’s largest crypto exchange, has faced regulatory scrutiny before. The company previously exited the U.S. market following allegations that it allowed funds linked to virtual theft and terrorism to flow through its platform undetected. Binance is incorporated in the Cayman Islands and operates without a traditional headquarters.
In a separate development, Changpeng Zhao, CEO and founder of Binance, pleaded guilty to anti-money laundering violations. Zhao was later pardoned by President Trump. Binance had previously agreed to pay $4.3 billion to U.S. authorities as part of a settlement.
Bloomberg did not identify the people familiar with the matter who provided details of the current DOJ investigation. Binance has not publicly responded to the investigation.
