U.S. Justice Department Probes Iran-Linked Crypto Transfers Connected to Binance

​The U.S. Department of Justice is reportedly examining whether Iranian networks used the cryptocurrency exchange Binance to move funds in ways that may have bypassed U.S. sanctions, according to a report by The Wall Street Journal.

The inquiry follows reports that an internal Binance review previously identified approximately $1.7 billion in transfers from primarily Chinese clients to digital wallets allegedly connected to Iranian proxy groups. Some of the funds were said to have been routed through a Hong Kong-based payments firm, Blessed Trust.

According to the report, U.S. officials have contacted individuals familiar with the transactions as part of the investigation. It remains unclear whether authorities are focusing on Binance itself, the users involved, or both.

The allegations come amid a legal dispute between the exchange and the publisher of the report. Binance has filed a defamation lawsuit against Dow Jones, the parent company of The Wall Street Journal, in the U.S. District Court for the Southern District of New York.

In its complaint, Binance argues that the newspaper inaccurately reported that the company dismissed employees who raised concerns about compliance and Iran-related transactions. The exchange claims those employees left due to alleged violations of internal data protection policies rather than retaliation.

Binance has previously faced regulatory scrutiny in the United States. In 2023, the company pleaded guilty to violations related to anti-money-laundering and sanctions laws and agreed to a $4.3 billion settlement along with ongoing compliance monitoring.

The exchange has said it did not directly conduct transactions with sanctioned entities and stated that it cooperated with law enforcement authorities during the investigation. According to Binance, its internal review found that about $24 million ultimately reached wallets associated with Iran's Islamic Revolutionary Guard Corps, and accounts linked to the intermediary network have since been closed.

The issue has also drawn attention from U.S. lawmakers. A Senate inquiry led by Senator Richard Blumenthal is seeking additional records concerning Binance's handling of transactions linked to Iranian entities.

Separately, Binance's U.S. affiliate has announced changes to its leadership team. Binance.US appointed Stephen Gregory as chief executive officer on March 9, while former CEO Norman Reed moved into an advisory role.

Gregory previously led the U.S. business of Currency.com and has held senior compliance roles at Gemini and CEX.io. The leadership transition comes as Binance.US seeks to rebuild and expand its U.S. operations following a period of regulatory pressure and enforcement actions.