Binance filed a lawsuit against Dow Jones on March 11 following Wall Street Journal allegations that approximately $850 million moved through the exchange via a covert payments network linked to Iran over roughly two years. CEO Richard Teng disputed the report as “fundamentally inaccurate,” claiming the WSJ omitted material facts about Binance’s proactive investigations and mischaracterized the timing of transactions relative to sanctions designations.
The Allegations and Binance’s Response
The Wall Street Journal reported in May that transactions connected to Iranian businessman Babak Zanjani flowed through a single Binance account, with activity continuing into December 2025. In February 2026, the WSJ published a separate report alleging $1 billion in Iran-linked transfers through the exchange. Teng countered that Binance maintains a “zero-tolerance policy for illicit activity” and that the exchange “did not permit any transactions with sanctioned individuals on its platform.” The CEO characterized the allegations as “false and defamatory,” asserting that Binance operates a “best-in-class, industry-leading compliance program.” The lawsuit represents an escalation from public dispute to legal action.
Compliance Metrics vs. Fresh Allegations
Binance reported a 96.8% reduction in sanctions-related exposure between January 2024 and July 2025, alongside a 97.3% decline in Iranian crypto exchange exposure during the same period. The exchange processed 71,000 law enforcement requests in 2025. These metrics emerged within Binance’s broader compliance framework following its $4.3 billion guilty plea and settlement with the US Department of Justice in 2023, which included appointment of an independent compliance monitor. The tension between these compliance improvements and fresh WSJ allegations underscores the ongoing scrutiny facing the exchange.
Congressional Pressure and Regulatory Context
The US Senate Permanent Subcommittee on Investigations sent a formal letter to Teng in February 2026, signaling congressional concern persists despite Binance’s settlement and stated compliance improvements. The timing coincides with reported US-Iran military escalation, elevating the political stakes around sanctions enforcement. Congressional oversight suggests lawmakers remain unconvinced by compliance metrics alone and seek deeper accountability for transactions occurring during Binance’s transition period.
Unresolved Questions and Next Steps
Critical facts remain undisclosed in public forums. The WSJ has not publicly responded to Teng’s specific claims about omitted investigations or transaction timing. The independent compliance monitor’s findings have not been disclosed. Underlying transaction details and the lawsuit’s current status remain opaque. The case will likely determine whether Binance’s compliance narrative holds under legal scrutiny.
