According to BlockBeats, on May 23, WSJ reported that Binance was accused of processing around $850 million in transactions related to a financial network tied to Iranian sanctions over two years, ultimately flowing to the Islamic Revolutionary Guard Corps (IRGC) in Iran.

In response, Binance CEO Richard Teng took to X platform to deny the reports, stating that the claims are "completely inaccurate" and emphasizing that Binance will not allow sanctioned entities to trade. He also noted that the suspicious activities occurred before the entities were sanctioned by the U.S.

Reports indicate that the key figure is Iranian businessman Babak Zanjani, whose related companies and associated accounts are alleged to have operated through the same device, forming a secret payment network on the Binance platform. The report further claims that Binance's internal compliance system detected unusual access from Tehran at the end of 2024 and triggered multiple risk control alerts, but the related accounts were not promptly shut down.

The WSJ further pointed out that the Central Bank of Iran and related entities also conducted fund flows through Binance between 2024 and 2025, including about $107 million and other cross-border crypto trades.

Binance has reiterated that its compliance system is 'industry-leading' and emphasized that after pleading guilty and paying $4.3 billion in settlement in 2023, it has been continuously strengthening its risk control mechanisms. Meanwhile, Binance has filed a defamation lawsuit against the WSJ regarding related reports and denies that the U.S. Department of Justice is investigating it in this matter.