The Department of Justice is investigating whether Binance, the leading crypto exchange, was used to circumvent U.S. sanctions and fund militant organizations. The probe reportedly examines transactions linked to the Islamic Revolutionary Guard Corps and the Houthi movement.
Officials are gathering evidence on funds allegedly channeled through Binance to Iranian proxies. The investigation's scope remains unclear, with questions about whether Binance itself could face scrutiny or if the focus is solely on users.
The inquiry stems from Binance's internal compliance team flagging approximately $1.7 billion moving from Chinese clients to digital wallets believed to fund Iran's regional proxies. A Hong Kong firm, Blessed Trust, is reportedly linked to over $1 billion of these transactions. Binance suspended employees involved in this internal review last November after they alerted company leadership.
A Treasury Department monitor overseeing Binance's compliance has also requested extensive details on these Iranian transactions, including Blessed Trust's alleged role in facilitating the fund transfers.