Binance denies reports of firing internal investigators

Binance denied reports that it fired internal investigators after uncovering about US$1.7 billion in crypto transactions linked to Iran.

The New York Times reported that last year, Binance’s internal team identified over 1,500 accounts accessed from Iran and traced funds flowing from two Binance accounts to Iranian entities, including wallets tied to the Islamic Revolutionary Guards Corps.

One account was linked to Blessed Trust, a Hong Kong payments firm working with Binance, which said it did not knowingly facilitate sanctions breaches.

The Wall Street Journal reported that another Hong Kong entity, Hexa Whale Trading, moved about US$500 million in USDT to Iran-linked networks.

Investigators reportedly faced suspension or dismissal in 2025 after reporting these findings, but Binance said no staff were dismissed for raising compliance concerns.

Binance also noted a 97.3% reduction in exposure to Iranian exchanges between January 2024 and 2026.

🔗 Source: The Block

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Implications, context, and why it matters.

The allegations come after a $4.3 billion penalty for similar offenses

In 2023, Binance pleaded guilty to violating anti-money-laundering and know-your-customer laws plus sanctions rules. The company agreed to pay $4.3 billion, one of the largest corporate fines in U.S. history 1.
The deal included government-imposed monitorships (external oversight that checks whether compliance controls work in practice). Binance promised “regulatory maturity,” and founder Changpeng Zhao stepped down as CEO 1.
The transfers reportedly used the stablecoin Tether (USDT) on the Tron blockchain (a public network used to issue and transfer crypto tokens). The funds went to Iran-linked entities 1.

Stablecoins on certain blockchains are drawing regulator attention

Tether on the Tron network for these transfers gives regulators another route for money to move outside traditional banking 1.
Reports describe firings or departures of seasoned internal investigators, some with law enforcement backgrounds. The shakeup feeds worry about a culture where staff can raise sanctions risks without career fallout. Binance denies firing investigators for reporting possible sanctions violations 1.
That kind of chill could narrow the compliance and investigations talent pool. It may also slow efforts to stop illicit finance and build trust with regulators 1.