Bitcoin Magazine
Feds Probing Binance Over Iran’s Bitcoin Use: Report
Federal authorities, including the U.S. Department of Justice, are examining whether Binance permitted Iran to bypass sanctions through its platform, a Bloomberg report indicates.
Citing individuals with knowledge of the situation, the publication reported on Tuesday that investigators are looking into whether Binance Holdings Ltd., operator of the globe’s largest cryptocurrency exchange, intentionally enabled trade for entities connected to Iran.
This development follows an announcement last week by the U.S. Department of Justice regarding its efforts to seize and forfeit $61 million in digital assets purportedly tied to black-market transactions of sanctioned Iranian petroleum. The DOJ stated that these funds were funneled through Binance by Chinese parties.
Iran has leveraged bitcoin and alternative digital currencies to evade American restrictions. In an April statement, Treasury Secretary Scott Bessent noted that the U.S. had begun focusing on digital wallets associated with the Iranian government.
Bessent added that the Iranian government’s digital assets had been locked down, predominantly consisting of Tether’s USDT stablecoin.
Additionally, the Treasury placed Iranian digital asset platform BitBank on its sanctions list last week as part of Operation Economic Outcast, an expansive governmental economic initiative led by the Trump Administration directed at the Islamic Republic of Iran and those supporting it.
Earlier this year, Iran launched a bitcoin-supported insurance program designed for its shipping enterprises. Unlike numerous other digital currencies, bitcoin resists freezing.
The Financial Times disclosed this month that the Middle Eastern nation has relied on bitcoin for international trade settlements via domestic digital asset platforms, following guidance from its central bank urging citizens to take any necessary measures to support the national economy.
Binance, which lacks a fixed headquarters and is registered in the Cayman Islands, previously faced regulatory scrutiny from American officials over allegations that it permitted capital connected to digital thefts and terrorism to pass through its marketplace unmonitored.
The company subsequently withdrew from the U.S. market and settled for $4.3 billion. Founder and CEO Changpeng Zhao resigned following a guilty plea to anti-money laundering infractions, though he was later granted a pardon by President Trump.
Frequently Asked Questions
Who is investigating Binance over Iran’s bitcoin use?
Federal prosecutors, including the U.S. Department of Justice, are conducting the investigation.
What amount of cryptocurrency is the DOJ seeking to forfeit?
The DOJ is seeking to seize and forfeit $61 million in cryptocurrency linked to black-market sales of sanctioned Iranian oil.
Which stablecoin made up most of the frozen Iranian crypto?
Most of the frozen Iranian crypto was in the form of Tether’s USDT stablecoin.
What penalty did Binance previously pay U.S. authorities?
Binance agreed to pay $4.3 billion and exited the U.S. market after facing allegations related to virtual theft and terrorism funds.
