No wrongdoing has been charged against the company or its employees in connection with the investigation.
Binance is facing renewed scrutiny from the US Justice Department over whether the prominent exchange has complied with a 2023 settlement, under which it agreed to pay $4.3 billion and implement enhanced anti-money-laundering and compliance controls, according to Tysen Duva, head of the DOJ’s criminal division.
The probe, led by federal prosecutors in Manhattan in coordination with the DOJ’s criminal division in Washington, comes as authorities investigate potential violations of US sanctions on Iran involving the crypto exchange.
Authorities are reportedly examining whether the exchange failed to prevent certain trading linked to potential Iran sanctions violations. Duva declined to discuss the facts or the progress of the investigation, however.
Binance said it continues to improve its controls and is fully committed to cooperating with law enforcement. The company and its employees have not been accused of wrongdoing in the investigation, and the case may end without charges or lawsuits.
US alleges crypto network laundered $1.5 billion from Iranian oil sales
US federal prosecutors are seeking the forfeiture of $61 million in crypto allegedly tied to Iranian oil sales that violated US sanctions, saying the funds were part of a wider money-laundering network intended to benefit the Iranian government and military.
The Southern District of New York’s US Attorney’s Office and the FBI announced the civil action on Sept. 14, alleging that proceeds from black-market sales of crude oil and petroleum products were used to finance Iranian government activities, including those linked to the IRGC.
According to the complaint, Chinese companies Blessed Trust and Hexa Whale allegedly facilitated the scheme through Binance trading accounts, providing services to convert fiat currency into cryptocurrency and moving funds through interconnected digital asset addresses.
The network allegedly received and distributed more than $1.5 billion in proceeds from Iranian oil sales, directing money to IRGC-linked money services businesses, cryptocurrency addresses and an Iranian exchange.
Prosecutors said the transactions were structured to conceal the funds’ source and ownership, and that the companies also used the US financial system to transfer or receive tens of millions of dollars.
The forfeiture action seeks to prevent the targeted funds from reaching the Iranian military and related entities. The allegations in the civil complaint have not been established unless a court enters judgment for the US government.
