US DOJ probes whether Iran used Binance to evade sanctions: WSJ

The U.S. Justice Department is reportedly investigating whether Iran used the cryptocurrency exchange Binance to evade American sanctions, focusing on more than $1 billion that allegedly flowed through the platform to a network funding Iran-backed militant groups.

The probe specifically centers on transactions that reportedly moved through Binance to entities supporting groups, including Yemen's Houthi militants, according to a report from The Wall Street Journal, citing company documents and people familiar with the matter.

According to the report, the Justice Department’s inquiry follows the dismantling of an internal investigation at Binance that had examined the flow of funds tied to the suspected network.

"We are not aware of any investigations," the company said in response to the report. Binance also told The Block that it is working with law enforcement and regulators where necessary.

The report adds to ongoing scrutiny surrounding the exchange's potential exposure to Iranian-linked crypto activity.

Earlier this week, Binance pushed back against claims tied to a U.S. Senate probe led by Sen. Richard Blumenthal, saying the investigation relied on "demonstrably false" reporting. Binance has also filed a defamation lawsuit against The Wall Street Journal over claims that the crypto exchange allegedly fired investigators who looked into the suspicious Iran-linked crypto flows.

Separately, a federal judge recently dismissed a lawsuit alleging Binance helped finance terrorism through crypto transactions, though the court indicated the plaintiffs could potentially refile the case with revised claims.

The exchange has also denied reports that it fired investigators examining alleged Iranian-linked crypto flows. Binance previously said those claims were inaccurate.

The renewed focus arrives as analysts and policymakers increasingly examine Iran’s use of digital assets to navigate financial restrictions.

Blockchain analytics firms have reported significant shifts in Iranian crypto activity during periods of geopolitical tension. In recent weeks, data from Chainalysis showed crypto outflows from Iran rising sharply after airstrikes tied to the ongoing regional conflict, a pattern researchers say often accompanies crisis events.

Other research has pointed to Iran’s expanding use of crypto infrastructure to mitigate sanctions pressure. A report by TRM Labs found that while Iranian crypto trading volumes have dropped significantly in recent years, the country’s digital asset ecosystem remains structurally resilient.

U.S. officials have also previously targeted crypto activity connected to Iranian actors, sanctioning exchanges and individuals linked to the country’s financial networks and raising concerns that digital assets could be used to bypass global banking restrictions.