Binance Under Scrutiny Again for Iran-Related Trading

U.S. federal prosecutors are investigating whether Binance violated sanctions against Iran by failing to stop certain trading activities on the platform. The investigation is being handled by the Manhattan U.S. Attorney's Office, with support from the Criminal Division of the U.S. Department of Justice in Washington. An investigation is not a determination of guilt and can end without any charges being filed.

According to reports, investigators are specifically looking into whether Binance was aware that Iran-related trading was occurring on the platform and yet did not intervene. This is a different premise from the earlier civil forfeiture case of $61 million, which was filed by the Southern District of New York on September 14, 2026. That case focuses on cryptocurrencies allegedly linked to the illegal sale of Iranian oil, and not on Binance as a party.

What the Investigation Entails

The reporting on September 22 marks the first time that prosecutors are publicly described as targeting Binance's own actions, rather than just the users who utilized the platform. Previous documents, including a report from the Wall Street Journal in March 2026, primarily focused on whether Iran used Binance to circumvent sanctions.

The $61 million forfeiture case is an in-rem proceeding: it targets the assets themselves, not a person or company. Binance has not been charged in that case and is not named as a defendant. Reuters later confirmed Bloomberg's report that same morning, while the Department of Justice did not comment and the Manhattan prosecutor's office was not immediately reachable after hours.

From the 2023 Settlement to Current Scrutiny

Binance pleaded guilty in November 2023 to violations of U.S. AML and sanctions laws and agreed to approximately $4.3 billion in fines. Founder Changpeng Zhao stepped down as CEO at that time, pleaded guilty to related charges under the Bank Secrecy Act, and served four months in prison before receiving clemency. As part of that settlement, independent compliance monitors were installed at Binance.

Binance reported in February 2026 that sanctions-related exposure had decreased by 96.8% between January 2024 and July 2025, thanks to improved transaction monitoring. Previous reporting on the accounts Blessed Trust and Hexa Whale raised larger Iran-related cash flows; Binance at that time disputed that it had allowed $1.7 billion in Iran-related transfers. Those looking to understand the broader sanctions context around crypto and Iran can refer to earlier reporting on OFAC sanctions against parties using bitcoin in Iran-related activities.

Sources and Reactions

The news was first reported by Bloomberg on September 22, 2026, based on sources who wished to remain anonymous due to the sensitivity of the matter. Reuters confirmed the account later that same morning. A spokesperson for Binance stated that the exchange has a zero-tolerance policy for sanctions violations and is fully cooperating with law enforcement to identify and eliminate bad actors, without directly confirming whether the company was aware of the reported investigation.

Key Facts at a Glance

• Investigation: DOJ and Manhattan prosecutors are investigating whether Binance knowingly allowed Iran-related trading.
• Forfeiture Case: $61 million in crypto, targeting assets, not Binance as a defendant.
• History: $4.3 billion settlement in 2023, with independent compliance monitors.
• Status: No judicial determination of violation after the 2023 settlement.
• Market: BNB and broader crypto prices initially reacted limitedly to the news.

What Happens Next?

There are currently no charges, search warrants, or official statements from the DOJ regarding the scope of this investigation. Possible next concrete steps include a charge, a decision not to prosecute, monitoring reports, or additional civil filings from SDNY. Until then, Binance's legal status in this matter remains undecided, as do similar sanctions enforcement cases against other exchanges in Europe that came to light earlier this year. The broader regulatory pressure on Binance, as recently evidenced when the company halted its MiCA application in Greece, remains part of the larger picture in which the exchange is being monitored internationally.