February 25, 2026
Major cryptocurrency exchange Binance is facing renewed scrutiny after several internal compliance investigators were reportedly suspended or dismissed following discoveries that substantial cryptocurrency flows may have been linked to Iranian entities, according to a report by The New York Times and individuals familiar with the matter.
According to the report, a dedicated internal team reviewing sanctions compliance identified that individuals located in Iran had accessed more than 1,500 Binance accounts over a one year period. Analysts examining blockchain data allegedly found that approximately $1.7 billion in digital assets moved through certain accounts that were connected, directly or indirectly, to entities with ties to Tehran. If confirmed, such transfers could raise concerns under international sanctions frameworks that restrict financial dealings with designated parties.
The findings reportedly came as Binance was operating under heightened regulatory oversight. In 2023, the exchange reached a multibillion dollar settlement with United States authorities after pleading guilty to violations related to anti money laundering and sanctions compliance. As part of that agreement, Binance committed to strengthening its internal monitoring systems and expanding compliance staffing.
Sources cited in the report claim that after presenting their findings to senior leadership, at least four members of the sanctions investigation team were suspended or terminated. The precise reasons for the personnel decisions have not been publicly detailed. Some insiders suggested the actions were linked to internal protocol disputes, while others questioned whether the dismissals were connected to the investigation’s conclusions.
Binance has denied retaliating against employees for raising compliance concerns. In public statements, the company has emphasised that no staff were dismissed for flagging potential sanctions violations. The exchange also stated that its exposure to sanctioned activity has dropped significantly in recent years following improvements to screening tools, customer verification procedures, and transaction monitoring systems. Company representatives have noted that a substantial portion of its global workforce is now dedicated to compliance and regulatory risk management.
The situation highlights the ongoing challenges faced by global cryptocurrency platforms in navigating complex sanctions regimes and monitoring cross border blockchain transactions. Even indirect transfers routed through multiple digital wallets can raise legal concerns if they involve sanctioned individuals or organisations.
Regulatory authorities are expected to review the reported findings closely. For Binance, the episode underscores the delicate balance between rapid global expansion and strict adherence to international compliance standards as scrutiny of the digital asset sector continues to intensify.
