Former Binance CEO Changpeng Zhao has rejected allegations that the exchange dismissed internal investigators after they uncovered Iran-linked transaction activity, calling the report “self-contradicting.”
Responding publicly, Zhao said he was not aware of the specific claims but argued the narrative did not add up. He noted that Binance relies on multiple third-party anti-money laundering screening tools, many of which are also used by law enforcement agencies, to monitor suspicious activity.
Iran-Linked USDT Transactions and Compliance Questions
The allegations center on more than $1 billion in transactions over roughly 18 months, primarily involving Tether (USDT) conducted on the TRON network. According to the claims, several investigators who raised internal concerns were later dismissed.
The issue surfaces as Binance continues operating under compliance reforms stemming from its 2023 settlement with US authorities. The exchange agreed to pay $4.3 billion in penalties tied to anti-money laundering and sanctions violations, and Zhao stepped down as CEO as part of that resolution.
Stablecoins and Sanctions Evasion Concerns
The report comes amid broader scrutiny of stablecoin usage. Blockchain analytics firm Elliptic recently highlighted growing accumulation of USDT by wallets linked to Iranian entities, suggesting digital assets are increasingly used to bypass traditional banking restrictions.
As regulatory oversight tightens, the controversy underscores ongoing tensions between global compliance requirements and the borderless nature of crypto markets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.