Binance Faces US Probe Over Alleged Iran Sanctions Evasion

Federal Investigation Intensifies

Federal prosecutors, including the Department of Justice, are examining whether Binance allowed Iran to circumvent US sanctions by utilizing its platform, according to a report from Bloomberg. The investigation centers on whether Binance Holdings Ltd. knowingly enabled Iran-linked entities to trade cryptocurrencies.

This development arrives shortly after the DOJ announced the seizure and forfeiture of $61 million in cryptocurrency. Authorities allege these funds originated from black-market sales of sanctioned Iranian oil, and were laundered through Binance by Chinese entities. The US has increasingly focused on crypto’s role in sanctions evasion.

Iran’s Growing Reliance on Crypto

Iran has demonstrably turned to Bitcoin, and other digital assets, to bypass US sanctions. In April, Treasury Secretary Janet Yellen stated the US began targeting crypto wallets associated with the Iranian regime, freezing assets primarily held in Tether’s USDT stablecoin. The Treasury Department also designated BitBank, an Iranian crypto exchange, as part of its economic pressure campaign against Iran.

Earlier this year, Iran launched a bitcoin-backed insurance service for its shipping companies, capitalizing on Bitcoin’s resistance to freezing. Reports indicate Iran is also leveraging crypto exchanges within the country to settle cross-border transactions, following guidance from its central bank to bolster the economy.

Binance’s History with US Regulators

Binance, incorporated in the Cayman Islands, previously faced scrutiny from US authorities regarding alleged facilitation of funds linked to illicit activities, including virtual theft and terrorism financing. The exchange exited the US market and agreed to a $4.3 billion settlement. Former CEO Changpeng Zhao pleaded guilty to anti-money laundering violations and stepped down, receiving a later pardon from President Trump.

Source: Bitcoin Magazine