Binance chief executive Richard Teng pushed back Friday on a Wall Street Journal investigation that alleged the exchange processed about $850 million in transactions linked to a sanctioned Iranian financier, with funds eventually flowing to Iran’s Islamic Revolutionary Guard Corps. In a post on X, Teng described the reporting as “fundamentally inaccurate,” arguing that Binance never facilitated transactions with sanctioned individuals and that any flagged activity occurred before those individuals were placed under U.S. sanctions. He added that Binance had already investigated the issues prior to the Journal’s inquiry and that the publication omitted facts Binance had provided.
The Journal’s report, published Thursday, centers on Babak Zanjani, who was re-sanctioned by the United States in January, and portrays a covert crypto payment network that allegedly moved $850 million through Binance accounts over two years. The article identifies Zanjani’s firm Zedcex and accounts tied to his sister, a romantic partner, and a company director as operating from the same devices, according to the Journal’s account.
The Journal said internal Binance compliance reports flagged a Zedcex account after activity from Tehran in late 2024. The account remained open for more than a year, triggering more than a dozen internal alerts. Binance’s own investigators reportedly recommended shutting down the accounts and reporting to authorities, but the Journal asserts the accounts stayed active.
Key takeaways
- The Wall Street Journal links roughly $850 million in flows through Binance accounts to a sanctioned Iranian financier, Babak Zanjani, and a clandestine network tied to Zedcex and related associates.
- Binance’s CEO disputes the findings, saying the exchange never processed transactions for sanctioned individuals and that flagged activity occurred before sanctions were in place.
- Binance previously settled with U.S. authorities in 2023, admitting AML and sanctions violations and paying a record $4.3 billion, while promising a major overhaul of its compliance framework.
- The Journal additionally reports that Iran’s central bank moved funds into Binance accounts in 2025, and that a foreign law-enforcement agency tracked substantial direct trades between Binance and Iranian financing networks during 2024–25; the accuracy and scope of these claims remain contested.
- Regulators have not concluded their inquiries, and Binance has taken legal steps, including a defamation suit against the Journal, while continuing to assert cooperation with authorities.
Allegations and Binance's rebuttal
The Wall Street Journal’s investigation paints a portrait of a persistent, unapproved flow of funds through Binance that allegedly originated with an Iran-based financier who faces U.S. sanctions. The piece highlights Babak Zanjani, who was re-sanctioned in January, and describes a covert crypto network that moved tens of millions through Binance accounts over a two-year period. The Journal points to Zanjani’s firm Zedcex, along with accounts belonging to a sister, a romantic partner, and a company director, as operating from the same devices.
According to the Journal, Binance’s internal compliance dashboards flagged a Zedcex account after Tehran-origin access in late 2024. The account reportedly remained open for more than a year, triggering more than a dozen internal alerts. The Journal quotes unnamed investigators who reportedly recommended shutting down the accounts and reporting the activity to authorities, but the accounts purportedly remained active.
In a reply posted on X, Binance CEO Richard Teng described the allegations as inaccurate and asserted that the exchange has never enabled transactions with sanctioned individuals. He argued that the flagged activity occurred before sanctions were in place and that Binance had already investigated the issues prior to the Journal’s inquiry. Teng also claimed that the Journal did not incorporate facts Binance had provided to reporters.
Compliance history and ongoing scrutiny
The Wall Street Journal’s reporting sits against a backdrop of intense regulatory and legal scrutiny for Binance. The exchange pled guilty in 2023 to anti-money-laundering and sanctions violations and agreed to a record $4.3 billion fine, accompanied by pledges to strengthen its compliance infrastructure. The Journal now asserts that the Iranian funds issue persisted after that settlement, a claim Binance says it does not recognize.
The Journal reported in March that the U.S. Department of Justice was examining whether Iran had used Binance to evade sanctions in the wake of the guilty plea. In response to coverage, Binance filed a defamation lawsuit against the publication, seeking damages and a jury trial; Binance said it had no knowledge of any active DOJ investigation into its operations and characterized its regulatory cooperation as ongoing.
Beyond Zanjani’s network, the Journal also notes that Iran’s central bank moved about $107 million in cryptocurrency into Binance accounts in 2025, and that a foreign law-enforcement agency tracked roughly $260 million in direct transactions between Binance accounts and Iranian financiers tied to extremist networks during 2024–25. Binance has repeatedly stressed its commitment to a “zero-tolerance” stance toward illicit activity and has pointed to its growing, industry-leading compliance program as proof of ongoing reform.
The Journal’s coverage also touches on a February report that Binance “shut down” an internal probe into roughly $1 billion routed through the platform toward Iranian proxy networks. Binance denied the claim, stating that its internal probe remained active and that it identified a broader, multi-jurisdictional pattern of suspicious financial activity across Asia and the Middle East. In response to ongoing questions, Binance has published a compliance-focused blog post and has engaged with lawmakers in multiple forums, including a Senate inquiry, to outline its stance on sanctions and anti-money-laundering controls.
Source: The Wall Street Journal reporting cited in multiple articles; Binance statements and social posts referenced in company communications and coverage.
What this means for the crypto ecosystem
These developments underscore the persistent tension between rapid crypto-enabled finance and the stringent compliance expectations that regulators and banks impose on the sector. For investors and users, the principal takeaway is that even a market-leading exchange faces ongoing, high-stakes scrutiny over sanctions compliance and the flows of funds with sanctioned jurisdictions. Binance’s ongoing regulatory engagements, lawsuits, and public rebuttals will likely shape how counterparties assess risk, audit readiness, and the reliability of cross-border crypto rails in the near term.
Looking ahead, observers will be watching how authorities weigh the Journal’s allegations against Binance’s stated reforms and continued cooperation with regulators. The outcome could influence not only Binance’s operations and governance but broader market perceptions of compliance in global crypto infrastructure.
Readers should monitor any formal regulator statements, court filings, and Binance’s forthcoming disclosures as the saga unfolds, particularly around how the platform manages sanctioned-party risk and how it documents its anti-money-laundering controls in the wake of a landmark settlement and ongoing investigations.
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