Investigations into Binance, a leading crypto platform, for allegedly transferring Iranian war funds

A broad investigation has now been launched into Binance, the world's leading cryptocurrency exchange platform, regarding transactions connected to Iran. It is reported that last November, Binance suspended employees who revealed that approximately $1.7 billion had circulated from Chinese customers to Iranian-backed groups, including Houthi rebels in Yemen.

Internal reports have also confirmed that over a billion dollars of this amount was sent through a Hong Kong-based payment company named 'Blessed Trust'.

In light of this situation, the observer appointed by the U.S. Treasury Department has requested further information from Binance regarding the relevant Iranian transactions. According to an agreement reached with U.S. authorities in 2023, it is Binance's responsibility to rigorously vet its customers for terrorism financing and sanctions evasion, and to report unusual transactions to the Treasury Department. However, a Binance spokesperson stated that they have not directly transacted with any sanctioned parties. The company further emphasizes that it independently uncovered a complex financial pattern across multiple jurisdictions and, working with law enforcement agencies, took steps to close the 'Blessed Trust' account this year.

Binance has also denied allegations regarding the dismissal of employees who conducted investigations, stating that they left for personal reasons. Furthermore, their internal investigations have revealed that only $24 million was directed to digital wallets linked to the Iranian Revolutionary Guard Corps (IRGC). Meanwhile, Binance filed a lawsuit against the Wall Street Journal (WSJ) in a federal court in Manhattan on Wednesday, alleging that their February article was false and misleading. Binance stated that the newspaper disregarded the strength of the company's compliance programs, but a spokesperson for the Journal said they have full confidence in their reporting.

Binance requested authorities last year to remove the U.S. government monitor, who is set to operate until 2029, and the company has also rejected some demands made by the monitor. All of this is happening against the backdrop of the U.S. making strenuous efforts to completely sever the financial networks of the Iranian Revolutionary Guard Corps before joint air operations with Israel against Iran. Since the use of cryptocurrency has become a very important way for Iran to repatriate income from oil sales to China, the U.S. Treasury also took steps to impose sanctions on two small-scale crypto exchanges last January.