Binance has filed a defamation lawsuit against The Wall Street Journal following a February report that alleged the platform halted an internal investigation into cryptocurrency flows connected to Iranian networks.
The report claimed internal compliance investigators had identified more than $1 billion in digital asset transactions linked to entities associated with Iran-backed militant groups. It further alleged that investigators were later suspended or removed after presenting their findings.
Allegations of $1 Billion Iran-Linked Crypto Transactions
According to the report, investigators traced transactions through several intermediaries, including a Hong Kong-based trading firm that allegedly moved hundreds of millions of dollars in stablecoins connected to Iranian-linked financial networks. The reporting suggested that the internal probe examined activity involving roughly $1.7 billion in transactions.
Binance Denies Halting Compliance Investigation
Binance has strongly rejected the allegations, stating that the compliance review was never dismantled. The company said its internal investigation continued and identified complex financial activity across multiple jurisdictions, including parts of Asia and the Middle East.
The exchange stated that accounts associated with suspicious activity were removed from the platform and that relevant information was shared with law enforcement authorities.
The lawsuit marks an escalation in a continuing dispute between Binance and the newspaper over the reporting. Meanwhile, the United States Department of Justice has reportedly examined whether Iranian actors used the exchange to bypass sanctions, although Binance said it is not aware of any such investigation.
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