Binance sues Wall Street Journal over February article on Iran-linked crypto flows, says claims are 'false and defamatory'

Binance has filed a lawsuit against The Wall Street Journal, accusing the publication of making false and defamatory claims in a February report about alleged Iran-linked crypto transactions.

In an official blog post on Wednesday, the exchange said it had filed the complaint targeting a Feb. 23 article that alleged Binance had dismantled an internal compliance investigation into more than $1 billion in cryptocurrency flows tied to a network supporting Iran-backed militant groups.

According to the Wall Street Journal’s earlier reporting, internal investigators at Binance traced transactions through entities including a Hong Kong trading firm that allegedly moved hundreds of millions of dollars in stablecoins connected to Iranian networks.

The report claimed investigators were later suspended or dismissed after presenting their findings.

Binance pushback

Binance has consistently disputed those claims and denied that it fired investigators over the reported $1.7 billion in crypto flows to Iran.

"Binance categorically did not dismantle any compliance investigation," a Binance spokesperson told The Block on Wednesday. "The WSJ continues to report the same falsities. As a result, we have filed a lawsuit against the Wall Street Journal for defamation."

The spokesperson added that the exchange’s internal investigation continued and identified complex financial activity across several regions.

"The truth is that Binance’s investigation continued and uncovered a sophisticated, multi-jurisdictional pattern of financial activity spanning Asia, the Middle East, and beyond. Binance mapped this complex activity, offboarded the relevant user accounts, and reported to law enforcement," the spokesperson said.

The lawsuit marks the latest escalation in an ongoing dispute between the exchange and the newspaper over reporting tied to Iranian-linked crypto flows.

When the original story appeared in February, Binance rejected the allegations and said it had not dismissed investigators involved in the compliance probe. The company also said the reporting mischaracterized its internal compliance efforts.

The legal challenge also arrives as the Wall Street Journal reported Wednesday that the U.S. Justice Department is probing whether Iran used Binance to evade sanctions. Binance said it was not aware of any such investigation.

"We are not aware of any investigations," the company said in response to the report, adding that it continues to cooperate with regulators and law enforcement where appropriate.