Binance faces Treasury monitoring demand amid Iran-linked transaction scrutiny

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Binance faces Treasury scrutiny

Highlights

U.S. Treasury recently sent Binance a letter demanding strict compliance with the monitoring program agreed under Binance’s 2023 plea deal, amid reports of $1 billion passing through to Iran-linked groups in 2024 and 2025.
Binance faces increased scrutiny following reports it fired investigators who uncovered Iran-linked flows and findings that $1.7 billion in transactions involved Iran-linked entities, though the company disputes these claims.
Democratic senators have urged further investigation into Binance’s sanctions compliance, while ongoing U.S.–Iran conflict heightens regulatory and political pressure on crypto exchanges handling Iranian transactions.

Treasury oversight and compliance demands

The Information reported that the U.S. Department of the Treasury has privately sent Binance a letter in recent weeks demanding that the exchange comply with the monitoring program it agreed to under its 2023 plea deal. The request comes amid reports that more than $1 billion passed through Binance to groups connected to Iran in 2024 and 2025.

Binance says it is cooperating with the independent monitor and relevant agencies. In comments to The Block, a company spokesperson says Binance is providing full cooperation and transparency, while the company separately says it recognizes the seriousness of past issues and is working to improve transparency and speed up its responses.

According to The Information, Treasury Under Secretary for Terrorism Gene Lange reminded Binance of its obligation to cooperate fully with the Treasury-imposed monitoring program by sharing relevant data records and documents in a timely manner. The Treasury Department does not immediately respond to a request for comment.

Binance agreed in 2023 to pay more than $4 billion in penalties and to retain an independent compliance monitor for three years as part of its resolution of charges tied to sanctions and money laundering controls.

Political pressure and broader sanctions risks

Pressure on the exchange has been building for months. In February, Fortune reported that Binance fired investigators who had uncovered evidence of Iran-linked flows, while The New York Times reported that internal investigators found last year that more than 1,500 accounts on the platform had been accessed from Iran and that about $1.7 billion had flowed from two Binance accounts to Iran-linked entities, including wallets tied to Iran's Islamic Revolutionary Guards Corps.

Binance disputes those reports and denies dismissing investigators for raising compliance concerns or reporting potential sanctions violations. The company previously told The Block that no investigator was fired for flagging potential sanctions breaches.

Democratic lawmakers are also increasing pressure on federal agencies. In February, a group of Democratic senators urged the Justice Department and Treasury to examine whether Binance is violating U.S. sanctions laws, and in April Sen. Richard Blumenthal requested more information about the monitors the exchange is required to maintain after its 2023 guilty plea.

The renewed scrutiny unfolds as Iran and the U.S. are involved in an armed conflict that has lasted more than two months, increasing the sensitivity of enforcement tied to sanctions compliance and financial flows linked to Iranian groups.

In our earlier coverage of Washington’s expanded Cuba sanctions under Executive Order 14404, we explained how the U.S. designated GAESA, a senior GAESA executive, and Moa Nickel SA, triggering asset-blocking measures and transaction bans under OFAC rules. We also noted the heightened secondary-exposure risk for non-U.S. companies and financial institutions that do business with sanctioned parties or operate in targeted sectors tied to Cuba’s military-linked economic network.

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