Binance has warned of legal action against the Wall Street Journal (WSJ) for defamation. The exchange has recently demanded corrections and retractions regarding the investigation into its compliance with sanctions.
Richard Teng, the CEO, publicly confirmed this on February 24. CEO Teng stated that the exchange officially contested the report and sent a legal letter containing a rebuttal.
Binance denies regulatory violations
A letter sent by the law firm Withers Bergman LLP criticized WSJ for reporting false and misleading claims that harmed Binance's reputation.
Binance claimed that the article distorted its compliance activities and did not reflect the responses provided by the company in advance. In particular, Binance denied allegations of violating Iranian sanctions or covering up internal investigations. The attorney emphasized that the report created a false impression that the exchange was involved in illegal activities and retaliated against employees who pointed out compliance risks.
The letter also pointed out that WSJ failed to maintain fairness and neutrality.
Along with this, Binance actively defended its compliance program through its own blog and challenged the conclusions of media reports.
The exchange stated that it employs over 1,500 compliance-related personnel and invests heavily in monitoring, sanction reviews, and financial crime detection.
It was stated that exposure related to sanctions significantly decreased between 2024 and 2025, and accounts with detected risk potential were investigated and expelled from the exchange.
Binance also denied that it dismissed employees for raising compliance concerns.
The exchange explained that some employees were dismissed after violations of confidentiality and data processing regulations were confirmed during an internal review process.
WSJ, allegations of over $1 billion flow related to Iran cryptocurrency.
This conflict began when WSJ reported that Binance processed over $1 billion in coin transactions linked to Iranian entities. Some of these accounts were connected to sanctioned organizations.
Reports indicate that internal investigators captured these suspicious transactions, and some investigators claimed they were later dismissed, raising questions about regulatory enforcement.
Binance denies these claims and is demanding formal corrective measures.