Binance, a leading cryptocurrency exchange, is reportedly under investigation by US prosecutors over possible violations of sanctions on Iran. The investigation, led by the Manhattan US attorney's office and the Justice Department's criminal division, examines transactions Binance allegedly failed to stop, including possible knowing permission for prohibited trading.
According to Bloomberg reporting, the investigation scrutinizes Binance's compliance with sanctions, specifically its knowledge and response to prohibited transactions. The report does not establish new wrongdoing or that prosecutors opened the investigation recently. Binance maintains a zero-tolerance approach to sanctions violations and cooperates with law enforcement.
The investigation comes almost three years after Binance agreed to a $4.3 billion criminal settlement with US authorities. In November 2023, Binance pleaded guilty to offences involving anti-money-laundering requirements, unlicensed money transmission, and sanctions violations. The settlement included an independent compliance monitor for three years and improvements to its anti-money-laundering and sanctions programmes.
Binance admitted failing to prevent transactions between US users and users in sanctioned jurisdictions. However, these admissions concern the conduct covered by the 2023 resolution and are not proof of the allegations now being investigated. The commercial issue is how effectively a large exchange can translate compliance commitments into decisions about which customers and transactions it permits.
The reported focus extends beyond prohibited activity appearing on a platform to the exchange's knowledge and response. Investigators are examining what Binance knew about the trades and its response. The specific transactions being examined are not immediately clear, and the sums involved, customers concerned, or controls prosecutors believe failed are not publicly available.
Binance's statement describes its position but does not resolve the reported questions about particular transactions. The company says it fully cooperates with law enforcement and remains committed to rooting out and shutting down bad actors. The Justice Department declined to comment, and the Manhattan prosecutor's office could not immediately be reached outside regular business hours.
An investigation can end without charges, and any charges, court filings, or official findings would be needed to establish the next stage. The reported investigation has not established new wrongdoing, and Binance's compliance with sanctions remains under scrutiny.
Key points
- US prosecutors investigate Binance for possible sanctions violations on Iran.
- The investigation examines Binance's knowledge and response to prohibited transactions.
- Binance maintains a zero-tolerance approach to sanctions violations and cooperates with law enforcement.
