In a fierce rebuttal to recent allegations, Binance CEO Richard Teng has categorically denied a Wall Street Journal (WSJ) report that claims the cryptocurrency exchange facilitated $850 million in transactions linked to a sanctioned Iranian financier associated with the Islamic Revolutionary Guard Corps (IRGC). The allegations, which have raised eyebrows in the financial and regulatory communities, suggest deep implications for the exchange’s compliance practices.
In a post made on the social media platform X, Teng labeled the WSJ's report "fundamentally inaccurate," asserting that Binance has never engaged in transactions with sanctioned individuals and that any flagged activities had occurred prior to sanctions being enacted. He asserted that the exchange had conducted its own investigations ahead of the Journal's outreach, which did not incorporate key facts presented by Binance.
Details from the Controversial Report
The WSJ’s investigative piece, published on May 22, 2026, centers on Babak Zanjani, a figure recently re-sanctioned by the US, identifying him as pivotal in a clandestine crypto payment network that allegedly funneled a staggering $850 million through Binance over a two-year span. The report reveals that Zanjani’s firm, Zedcex, along with accounts linked to family members, operated from the same devices and sparked numerous alerts within Binance’s compliance systems.
Internal compliance documents reportedly indicated that the Zedcex account drew attention from Binance's compliance team after detecting access originating from Tehran in late 2024. Despite their findings, the account remained operational, raising significant concerns about oversight and compliance protocols within the company.
Past Compliance Issues and Ongoing Investigations
This controversy unfolds amid Binance’s previous acknowledgment of regulatory challenges; in 2023, the exchange pled guilty to anti-money laundering violations and was fined a record $4.3 billion, committing to a comprehensive revamp of its compliance framework. However, according to the recent report, Iranian funds reportedly resurfaced shortly after the settlement.
The Justice Department is also said to be investigating Iran's alleged use of Binance for sanctions evasion, further intensifying the scrutiny on the exchange. Following the WSJ's report, Binance initiated a defamation lawsuit against the outlet, asserting that the publication’s claims are unsubstantiated and misleading.
In a broader context, the WSJ reportedly uncovered that Iran's central bank moved approximately $107 million in cryptocurrency into Binance accounts in 2025. Furthermore, a foreign law enforcement agency has traced an estimated $260 million in transactions directly connecting Binance accounts with Iranian terrorist financiers during 2024 and 2025, prompting urgent calls for transparency.
Binance’s Commitment to Compliance
“Binance maintains a zero-tolerance policy for illicit activities and implements a leading industry compliance program that continually evolves,” Teng asserted. He emphasized the diligence Binance applies toward compliance but acknowledged the complex nature of detecting illicit financing activities across geographical and regulatory landscapes.
In February, another WSJ article suggested that Binance had allegedly shut down an internal investigation into transactions connected to Iranian proxy networks, a claim which the exchange vehemently denied, reiterating its ongoing comprehensive investigations.
As this situation develops, all eyes in the cryptocurrency world remain glued to Binance, assessing the implications not just for the exchange but for the broader crypto ecosystem, particularly regarding regulatory compliance and the potential fallout of these assertions.
Source: Cointelegraph