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U.S. Department of Justice Investigates Binance Over Alleged Iran Sanctions Evasion

U.S. Department of Justice Investigates Binance Over Alleged Iran Sanctions Evasion

New reporting links Babak Zanjani’s network to alleged IRGC-related crypto flows through Binance, adding detail to claims of sanctions evasion and raising further questions about exchange compliance controls.

Fact Check
Both core elements of the claim are strongly supported by multiple independent sources. The DOJ investigation into Binance over alleged Iran sanctions evasion is confirmed by 'US DOJ probes whether Iran used Binance to evade sanctions: WSJ | The Block' (March 11, 2026) and 'US DOJ probes Iran's use of Binance for sanctions evasion' (Crypto Briefing). Binance's public dispute of the WSJ's ~$850 million figure is confirmed by 'Binance disputes latest WSJ report on alleged Iran-linked transactions | The Block' and 'Binance disputes WSJ report on Iran-linked transactions totaling $850M' (Crypto Briefing), and directly evidenced by Binance CEO Richard Teng's X post calling the reporting 'fundamentally inaccurate.' The claim accurately characterizes the situation: the DOJ probe is real and ongoing, the $850 million figure comes from the May 22, 2026 WSJ report on Babak Zanjani-linked transactions, and Binance has actively disputed it. The minor caveat is that the broader DOJ probe involves allegations exceeding $1 billion total, while the $850 million figure is specific to the latest WSJ report's Zanjani-focused allegations — but the claim does not misrepresent this distinction.
Summary

According to the new report, Iranian businessman Babak Zanjani’s network allegedly processed about $850 million in crypto transactions through Binance over the past two years, with investigators assessing nearly half, or about $425 million, as linked to Iran’s military. The report says the activity involved deposits and withdrawals through a single Binance account tied to Zanjani’s crypto business Zedcex, which allegedly moved proceeds from Iranian oil sales through Turkey and a Dubai subsidiary before sending funds onward to exchanges including Nobitex for conversion into rials. It also says Binance’s internal investigators flagged Iranian links, Tehran access, and other red flags, while the main account remained active. Binance had previously disputed Wall Street Journal reporting on the alleged Iran-linked transactions. The latest details add to scrutiny surrounding the U.S. Department of Justice investigation into whether Iran used Binance to evade sanctions.

Terms & Concepts
  • Sanctions evasion: The act of bypassing financial or trade restrictions imposed by governments, often by disguising counterparties, routes, or transaction origins.
  • IRGC: The Islamic Revolutionary Guard Corps, a powerful Iranian military organization that is subject to extensive U.S. sanctions.
  • Crypto exchange: A platform for buying, selling, and transferring digital assets, typically expected to apply customer checks and transaction monitoring.