The Wall Street Journal has reported that internal investigators at this exchange identified the transfer of more than 1 billion dollars in digital assets linked to entities attributed to the Islamic Revolutionary Guard Corps (IRGC), but instead of pursuing the matter, they were dismissed from their jobs.
Binance, the world’s largest digital asset exchange, has consistently been at the center of controversy. Since its establishment in 2017 by Changpeng Zhao in Shanghai, the platform rapidly grew into a giant handling billions of dollars in daily transactions. However, its rapid growth has been accompanied by legal challenges.
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In 2023, Binance admitted to violating sanctions and anti-money laundering laws and agreed to pay more than 4 billion dollars in fines. The settlement included oversight by U.S. authorities, the replacement of the CEO, and strengthening compliance structures. Zhao was sentenced to four months in prison but was pardoned by U.S. President Donald Trump in October 2025.
Following this pardon, Binance sought to strengthen its ties with the Trump administration. However, internal documents and statements from informed sources indicate that Binance has continued to function as a channel for circumventing sanctions, particularly for the Iranian regime, which uses cryptocurrency to finance its activities.
Discovery of suspicious transfers: From China to the Iranian regime
Binance’s financial crimes investigation team, which had been reinforced after the 2023 settlement, included specialists in sanctions and counter-terrorism financing.
In the summer of 2025, following requests from the U.S. Federal Bureau of Investigation (FBI) and Israel’s National Bureau for Counter Terror Financing, the team launched an investigation. They identified accounts registered under the names of Chinese customers that were linked to digital wallets—wallets that the United States and Israel attributed to proxy forces of the Iranian regime.
According to internal reports, about 1.7 billion dollars were moved from these accounts in 2024 and 2025. Part of these funds reached groups backed by the Iranian regime, such as the Houthis in Yemen, who have been involved in attacks on ships in the Red Sea.
More than 1 billion dollars of these transfers were conducted through the account of Blessed Trust, a Hong Kong–based payments company and a close partner of Binance.
Investigators also identified another company named Hexa Whale Trading. This Hong Kong–based company was registered in 2024 and had opened a special account at Binance with incomplete documentation.
Hexa had transferred about 500 million dollars in Tether to “Entity A,” a group consisting of seven wallet addresses linked to the Islamic Revolutionary Guard Corps. The IRGC, which the United States designates as a terrorist organization, uses this network to covertly channel Iranian regime oil revenues to Chinese companies. This shadow banking route is part of the Iranian regime’s strategy to evade sanctions.
Blessed Trust had a close relationship with Jingkai “Rock” He, one of Binance’s co-founders. Telegram messages show that representatives of this company were referred to as “Rock’s friends.” There was even evidence that Binance employees occasionally logged into the company’s account, an action that could indicate internal control.
The investigators presented their findings in October 2025 to senior executives, including Richard Teng, the CEO of Binance, and Noah Perlman, the Chief Compliance Officer. However, in November, these investigators were first suspended and then dismissed.
Documents indicate that the Blessed Trust account had been marked with an internal label and that access to it was restricted, a matter that could have hindered investigations. Binance has stated that the label was an error and that investigations continued.
Access by the Iranian regime and Russia’s shadow fleet
In addition to these transfers, investigators identified more than 2,000 accounts that had accessed Binance from inside Iran using virtual private networks. They proposed requesting additional information from these users, but this proposal was rejected.
These developments occurred as President Donald Trump reinstated the maximum pressure policy against the Iranian regime in February 2025 in order to restrict Tehran’s access to financial resources. The Iranian regime uses cryptocurrency to finance its nuclear program, proxy groups, and cyberattacks.
Binance has denied all allegations. A company spokesperson stated that the investigators were not dismissed because of their reports and that reviews did not show users directly transacting with sanctioned entities; rather, the funds were transferred in multiple stages. Binance has emphasized that it complies with laws and cooperates with law enforcement authorities.
However, reports by The New York Times and Fortune have confirmed similar details. The New York Times reported that 1.7 billion dollars were transferred from two Binance accounts to entities linked to the Iranian regime, and that one of these accounts belonged to a Binance vendor.
Fortune also wrote that investigators were dismissed after discovering more than 1 billion dollars in Tether on the Tron blockchain. These reports indicate that Binance has restricted its cooperation with legal requests and insists that all inquiries be pursued through official channels.
