Binance CEO Refutes WSJ Report on Alleged $850 Million Iran Transactions

In a stinging rebuttal, Binance CEO Richard Teng has firmly denied allegations made by the Wall Street Journal (WSJ) claiming that the cryptocurrency exchange facilitated $850 million in transactions connected to a sanctioned Iranian financier, linked specifically to Iran’s Islamic Revolutionary Guard Corps (IRGC). The report ignited a firestorm of controversy as it suggested significant compliance lapses at the world's largest digital asset exchange.

Teng's Defense Against Allegations

In a post on X, formerly known as Twitter, Teng described the WSJ report as "fundamentally inaccurate," emphasizing the exchange’s stringent policies against transacting with sanctioned individuals. He noted that any flagged activity preceded the official sanctioning of the individuals involved. Moreover, he asserted that Binance had initiated its internal investigation regarding the matter before being contacted by the publication, alleging that critical details were omitted from the article.

Details from the Article

Published on Thursday, the WSJ’s investigation identified Babak Zanjani, a financier re-sanctioned by the U.S. in January, as a pivotal figure in a clandestine network purportedly using Binance for significant cryptocurrency transactions. The report claimed that Zanjani's operation, Zedcex, and multiple accounts associated with his close affiliates processed flows of funds through Binance over two years.

Internal Compliance Concerns

The WSJ alleged that Binance's internal compliance team had flagged the Zedcex account after detecting access originating from Tehran in late 2024, yet the account remained active well beyond initial alerts, as cited by the report. According to sources within the WSJ, Binance’s compliance officers recommended shutting down the accounts and reporting them to authorities, but it is asserted that these recommendations were not acted upon.

Legal and Regulatory Repercussions

Despite its efforts to address regulatory compliance, Binance continues to face scrutiny following its guilty plea to anti-money laundering violations in 2023, which resulted in a historic fine of $4.3 billion. The WSJ report further claimed that Iranian fund flows purportedly resumed shortly after the company’s settlement, prompting an investigation by the U.S. Justice Department into the cryptocurrency platform’s ties with Iranian officials.

Binance's Reaction to Investigations

In response to escalating scrutiny, Binance filed a defamation lawsuit against the WSJ, seeking both damages and a jury trial. The company has contested the existence of any Justice Department probe, asserting their commitment to transparency and cooperation with law enforcement agencies.

Additional Allegations of Illicit Activity

Further raising eyebrows, the WSJ has also alleged that Iran's central bank transacted $107 million in cryptocurrency through Binance accounts in 2025, alongside reports of approximately $260 million in direct transactions between Binance accounts and Iranian financiers classified as terrorists in 2024 and 2025. Teng reaffirmed Binance's supposed commitment to combating illicit activity, stating, "Binance has zero tolerance for illicit actions and runs a best-in-class compliance program that evolves continually."

Conclusion: The Road Ahead for Binance

The controversy highlights ongoing tensions in the cryptocurrency industry, particularly concerning compliance with international sanctions. As investigations and legal battles unfold, Binance faces critical challenges in regaining trust and solidifying its reputation amid serious allegations of facilitating transactions linked to sanctioned entities.

For more updates, follow this source.

Source: CoinTelegraph Blockchain