Wed 25 February 2026 ▪
6
min read ▪ by
Binance is going through a difficult time following allegations of internal layoffs linked to the revelation of around $1.7 billion worth of cryptocurrency transactions potentially linked to Iran. This situation highlights the growing challenges facing major crypto platforms in terms of compliance, risk management and monitoring of international financial flows. In a market already sensitive to regulatory moves, the case highlights how major players are addressing the transparency and integrity of their operations.
In short
- Internal investigators identified $1.7 billion sent to entities linked to Iran through more than 1,500 accounts accessed from the country, according to the New York Times.
- Two companies, Hexa Whale and Blessed Trust, are at the center of the suspicious flows, with $490 million and $1.2 billion transferred to wallets linked to the Islamic Revolutionary Guard Corps.
- Binance vehemently denies the allegations, claims no sanctions were violated and says it has reported suspicious activity to authorities.
- Conflict intensifies with Wall Street Journal: Binance initiates defamation lawsuits accusing the media of biased and inaccurate reporting on its compliance program.
Analysis of transfers and crypto transactions on Binance
Following recent revelations by Fortune, which said that more than $1 billion may have flowed through Binance to Iran and that five internal investigators were fired for reporting the movements to their management, a new New York Times investigation published this Monday provides more information.
It reveals that Binance’s internal investigators identified more than 1,500 accounts from Iran last year. Their analysis also shows that about $1.7 billion in cryptocurrencies flowed from the platform’s two accounts to recipients linked to Iran, including some wallets linked to the Islamic Revolutionary Guard Corps.
Experts examine two specific companies in particular. Hexa Whale, a Hong Kong company that used Binance to transfer $490 million to cryptocurrency wallets linked to Iranian entities, according to the New York Times. According to the documents, an Israeli official told investigators that Hexa Whale funds terrorist organizations such as the Houthis, the Iranian-backed militia that controls northern Yemen.
The other company is called Blessed Trust. This financial service provider works closely with Binance. Specialists note that $1.2 billion in cryptocurrencies flowed from the Binance Blessed Trust account to entities linked to Iran. According to the article, links were established between these entities and cryptocurrency wallets controlled by Iran’s Islamic Revolutionary Guard Corps.
Leung Ka Kui, director of Blessed Trust in Hong Kong, said his company had never knowingly supported sanctions-violating transactions or made payments to Iranian entities, according to the same newspaper. He clarified that Blessed Trust’s cooperation with Binance was limited to routine operations such as billing or paying salaries.
Binance’s response to these allegations
In a statement delivered to The Block media on Tuesday, a Binance spokesperson confirmed that no investigators have been fired for reporting compliance issues or mentioning possible sanctions violations.
He also specified that the company strongly disputed the conclusions stated in the recent articles and emphasized that the internal audit did not reveal any violation of laws or sanctioning regulations regarding the mentioned transactions. He added that Binance detected the suspicious activity and reported it to the relevant authorities, which he sees as evidence of the effectiveness of its internal control systems.
The exchange platform also highlighted data showing a significant reduction in its exposure to Iranian entities. In the publication on
He further reminded that public blockchains work openly: any user can send funds to an address, which makes it impossible to completely exclude exposure. Changpeng Zhao, the founder of Binance, responded in a message posted on X, claiming that some media outlets are spreading “negative stories” coming from former employees. He added that he believes Binance has “the best compliance program in the industry.”
Escalating tensions between Binance and the Wall Street Journal
The confrontation between Binance and the Wall Street Journal intensifies as other US media outlets publish serious allegations. Following the publication of articles mentioning the circulation of massive funds potentially linked to Iran through the platform, CEO Richard Teng announced in a post on X that the company is taking legal action against the Wall Street Journal, accusing it of defamation.
Binance directly blames the WSJ for publishing an investigation containing what it says is inaccurate and damaging information about its sanctions compliance program.
The law firm Withers Bergman LLP is sending a letter to the media formally disputing the report. Binance claims the article misrepresents the reality of its compliance mechanisms, ignores responses provided prior to publication, and falsely suggests violations of Iranian sanctions or obstruction of internal investigations.
The company also rejects the idea that it would sanction employees who reported non-compliance risks. According to Binance, the WSJ’s approach lacks impartiality and fuels a biased narrative at a time when several influential media outlets are publishing sensitive revelations about it.
A look into the future of crypto compliance
Issuer BNB’s case highlights that compliance issues in the crypto ecosystem continue to evolve rapidly, with increasing challenges in managing cross-border risks and international sanctions. The industry needs to clarify the rules and strengthen transparency mechanisms to meet the expectations of regulators, users and markets.
Platforms like Binance are likely to remain under increased scrutiny. Their ability to demonstrate the effectiveness of their compliance systems could influence public perception and the way regulators approach the cryptocurrency sector for years to come.
Maximize your Cointribune experience with our “Read and Earn” program! Earn points for every article you read and get access to exclusive rewards. Register now and start reaping the benefits.
Journalist and web editor passionate about the world of cryptocurrencies and Web3 technologies. I focus on the latest trends and news in order to offer high quality content to a wide audience in the industry.
DISCLAIMER OF LIABILITY
The views, thoughts and opinions expressed in this article are solely those of the author and should not be taken as investment advice. Before making any investment decision, do your own research.
