Binance CEO Richard Teng rejected a Wall Street Journal report claiming $850 million in Iran-linked transactions moved through the exchange to the Islamic Revolutionary Guard Corps, calling the allegations “fundamentally inaccurate.” The denial, posted on X on May 23, came one day after the WSJ published its investigation, which alleged Binance resumed Iranian fund flows shortly after settling a record $4.3 billion anti-money laundering fine in 2023.
The WSJ Investigation and Binance’s Response
The Wall Street Journal’s investigation traced transactions allegedly involving Babak Zanjani, a sanctioned Iranian financier, and his firm Zedcex through Binance accounts. According to the report, $260 million in direct transactions between Binance and Iranian terrorist-linked financiers occurred between 2024 and 2025. Additionally, Iran’s central bank transferred $107 million in cryptocurrency into Binance accounts during 2025. Teng stated that “Binance has zero-tolerance for illicit activity and has built and operates a best-in-class industry-leading compliance program that continues to grow,” while insisting the exchange “never permitted transactions with sanctioned individuals.” Binance filed a defamation lawsuit against the WSJ following publication.
Compliance Claims vs. Documented Alerts
The timeline reveals tensions between Binance’s compliance narrative and operational records. Internal systems flagged the Zedcex account after Tehran access was detected in late 2024, yet the account remained active for over a year afterward, according to the WSJ. Over a dozen internal alerts were reportedly triggered during this period. A February 2026 WSJ report alleged Binance had dismantled an internal Iran investigation, which the exchange denied. In March 2026, Binance responded to a Senate inquiry by denying it facilitated transactions with sanctioned Iranian entities. Teng claimed facts provided to the WSJ were excluded from the final story.
Regulatory Pressure and DOJ Investigation
The U.S. Department of Justice is investigating Iran’s use of Binance for sanctions evasion, marking a significant development in an exchange already under intense regulatory scrutiny. Zanjani was re-sanctioned by the U.S. in January 2026, tightening pressure on any entities facilitating his activities. The allegations carry particular weight given Binance’s 2023 guilty plea to anti-money laundering and sanctions violations and its commitment to a comprehensive compliance overhaul as part of the settlement agreement.
What Comes Next
The defamation lawsuit and DOJ investigation will likely determine whether the alleged transactions represent systemic failures post-settlement or isolated incidents caught by Binance’s monitoring systems. The exchange has not disclosed when the Zedcex account was ultimately closed or provided detailed remediation steps for the flagged activity. Resolution of these competing claims will significantly impact Binance’s regulatory standing and market confidence in its compliance infrastructure.
