- U.S. Treasury reportedly sent Binance a private letter demanding compliance with its monitoring program.
- Reports claimed more than $1 billion passed through Binance to Iran-linked entities in 2024 and 2025.
- Binance stated it is providing the monitor with full cooperation and transparency.
- The exchange previously agreed to retain an independent compliance monitor after its 2023 guilty plea.
The U.S. Department of the Treasury has reportedly required Binance to follow a monitoring program the cryptocurrency exchange agreed to as part of its 2023 guilty plea related to sanctions and anti-money-laundering violations. According to a report published Thursday, the Treasury Department sent Binance a letter in recent weeks demanding compliance with the monitoring arrangement. The report came amid claims that more than $1 billion passed through Binance to entities connected to Iran in 2024 and 2025. The report comes as the U.S. and Israel continue efforts to increase economic pressure on Iran amid ongoing conflict involving Iran and the United States.
Binance Responds to Treasury Oversight
Binance said it is cooperating with the independent monitor and relevant agencies.
“Binance is committed to cooperating with the independent monitor and our ongoing collaboration with relevant agencies,” the company said in a statement Thursday. “We welcome constructive feedback from the Treasury and view this oversight as an important part of continuously strengthening our compliance and anti-money laundering controls. We are providing the monitor with full cooperation and transparency.”
Binance also disputed reports that it dismissed investigators after they uncovered crypto flows connected to Iranian entities linked to terrorist organizations.
In February, Fortune reported that Binance had fired investigators who uncovered evidence of Iran-linked flows. The New York Times separately reported that internal investigators discovered last year that more than 1,500 accounts on the platform had allegedly 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 CEO Richard Teng denied the allegations.
“No sanctions violations were found, no investigators were fired for raising concerns, and Binance continues to meet its regulatory commitments,” Teng wrote.
At the time, a Binance spokesperson also said that no investigator had been dismissed for raising compliance concerns or reporting potential sanctions violations.
The developments followed increased scrutiny from U.S. lawmakers over whether Binance had complied with the terms of its settlement agreement. In February, a group of senators urged the Treasury Department and the Department of Justice to review the exchange’s sanctions controls following reports linking Binance to Iran-related activity. As part of its 2023 settlement, Binance agreed to pay more than $4 billion in penalties and retain an independent compliance monitor following its guilty plea. The agreement also required the company to implement major compliance reforms.
The Treasury previously said the settlement allows officials to access Binance’s books, records, and systems through an independent monitor for five years. The department also stated that failure to comply with the agreement could expose the exchange to additional penalties, including a suspended $150 million penalty.
Lawmakers Increase Scrutiny of Binance: Over recent months, Democratic lawmakers have urged the Treasury Department and the Department of Justice to investigate whether Binance violated U.S. sanctions laws. In April, Sen. Richard Blumenthal requested additional information regarding the independent monitors Binance was required to maintain following its 2023 guilty plea.
FAQs
1. Why did the U.S. Treasury reportedly contact Binance?
According to reports, the U.S. Treasury Department sent Binance a letter demanding compliance with the monitoring program the exchange agreed to follow as part of its 2023 guilty plea.
2. What allegations were made regarding Iran-linked transactions on Binance?
Reports claimed that more than $1 billion passed through Binance to entities connected to Iran during 2024 and 2025.
3. How did Binance respond to the reports?
Binance said it is cooperating fully with the independent monitor and relevant agencies while continuing to strengthen its compliance and anti-money laundering controls.
4. What compliance agreement did Binance make in 2023?
Binance agreed to pay more than $4 billion in penalties and retain an independent compliance monitor following its 2023 guilty plea.
Source: The Information
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