In September 2026, U.S. federal prosecutors are probing Binance over transactions that may have violated Iran-related sanctions between January 2018 and May 2022, reopening a legal file that already weighs heavily on the world’s largest crypto exchange.
🔑 Key Takeaways
- The DOJ and the Manhattan U.S. Attorney’s Office are jointly investigating Binance
- A September 14, 2026 civil complaint targets $61 million in USDT linked to Iranian oil
- A network tied to Hexa Whale and Blessed Trust allegedly laundered $1.5 billion
- In 2023, Binance pleaded guilty and paid $4.3 billion in penalties
- Binance says 25% of its workforce (~1,500 people) work on compliance
A joint criminal probe relaunched in September 2026
According to sources close to the matter cited by Bloomberg News, Reuters, and CoinDesk, the investigation is being run jointly by the U.S. Attorney’s Office for the Southern District of New York (Manhattan) and the Department of Justice’s Criminal Division in Washington. Authorities are seeking to determine whether Binance knowingly permitted trading activity in violation of U.S. sanctions programs, particularly those targeting Iran.
Federal prosecutors allege that between January 2018 and May 2022, the platform facilitated more than $898 million in transactions between U.S. users and individuals normally resident in Iran. The specific transaction patterns under scrutiny have not been disclosed, but the DOJ has noted that federal probes can close without any charges being filed.
A civil complaint targeting $61M in USDT
On September 14, 2026, the DOJ filed a civil forfeiture action in the U.S. District Court for the Southern District of New York. The complaint seeks $61 million in USDT — a dollar-pegged stablecoin issued by Tether — allegedly tied to proceeds from sanctioned crude oil sales involving Iran.
Two Hong Kong-registered companies sit at the center of the alleged scheme:
- Hexa Whale — allegedly opened Binance accounts to trade proceeds of Iranian oil sales
- Blessed Trust — allegedly acted as an intermediary in the laundering chain
According to the complaint, the network is believed to have laundered more than $1.5 billion in profits. The U.S. Attorney’s Office has not formally accused Binance of wrongdoing in this particular filing, instead pointing to the misrepresentation by the two Hong Kong entities about the true nature of their business.
The 2023 precedent: a record $4.3 billion settlement
The current episode is not Binance’s first run-in with U.S. justice. In November 2023, the Treasury’s Office of Foreign Assets Control (OFAC) announced a $968,618,825 civil settlement with Binance Holdings Ltd., resolving the platform’s potential liability for 1,667,153 apparent violations of U.S. sanctions programs. Between 2017 and 2022, Binance had participated in the export of goods and services from the United States — or by U.S. persons — to sanctioned jurisdictions.
| Event | Date | Amount / Sanction |
|---|---|---|
| OFAC civil settlement | November 2023 | $968,618,825 |
| Criminal fine (Binance) | November 2023 | $4.3 billion |
| Changpeng Zhao sentence | 2024 | 4 months in prison |
| Independent compliance monitor | 2023 | 5 years |
| Disputed U.S.–Iran transactions | 2018–2022 | >$898 million |
| Laundering via Hexa Whale / Blessed Trust | — | >$1.5 billion |
| USDT under seizure (2026 complaint) | Sept. 14, 2026 | $61 million |
In parallel, Binance pleaded guilty to violations of banking and sanctions laws and agreed to retain an independent compliance monitor for five years. Founder and former CEO Changpeng Zhao (CZ) pleaded guilty to failing to maintain an effective anti-money-laundering program, stepped down, and ultimately served four months in prison before receiving a presidential pardon from Donald Trump the following year.
Binance’s defense and mounting political pressure
In a statement issued after the complaint, Binance said it does not permit transactions with sanctioned persons and is fully cooperating with authorities. According to the platform:
- April 2025: contacted by law enforcement regarding Hexa Whale and addresses tied to terrorist financing
- June 2025: KYC and transaction data provided to authorities
- August 2025: Hexa Whale delisted from Binance.com
- January 2026: Blessed Trust offboarded after source-of-funds checks
“We maintain a zero-tolerance policy toward sanctions violations. We cooperate fully with law enforcement, and we remain committed to eradicating and shutting down bad actors.”
Binance spokesperson, official statement
In February 2026, the platform published a striking figure — 1,500 people, or roughly 25% of its global workforce, working on compliance. Yet several recent episodes have undermined that messaging:
- February 2026: Senator Richard Blumenthal opens an investigation into $1.7 billion in alleged sanctions violations
- March 2026: Binance files a defamation suit against Dow Jones (Wall Street Journal) over a report tying Iran to the platform
- April 2026: The New York Times reports that Binance has made it harder for law enforcement to obtain user data in several jurisdictions
Conclusion: a stress test for the world’s largest exchange
This new probe puts Binance under significant legal and reputational strain at a time when the platform is still rebuilding trust after its 2023 settlement. Federal prosecutors may ultimately decide not to bring charges, but the broader geopolitical context — renewed U.S. sanctions against Iranian proxies in the Middle East — keeps regulatory pressure high.
For the wider crypto industry, this case confirms that sanctions compliance is becoming a cornerstone of U.S. supervision, mirroring the trajectory of Europe’s MiCA (Markets in Crypto-Assets) framework. Centralized exchanges will need to demonstrate unimpeachable traceability of cross-border flows to retain operational licenses in the United States.
Sources
- CoinDesk — Binance probed by U.S. federal prosecutors for sanctions violations
- U.S. Treasury OFAC — Recent Actions (2023-11-21)
- Reuters — Binance under US scrutiny over possible Iran sanctions violations
- Bloomberg — DOJ Probing Binance Over Potential Iran Sanctions Violations
- The Edge Markets — Binance faces fresh U.S. Iran sanctions probe
- Bitcoin Foundation — Binance Faces Fresh U.S. Iran Sanctions Probe
This article is published for informational and educational purposes only. It does not constitute investment advice. Do your own research (DYOR) before making any decision.
