After the Wall Street Journal said that the Justice Department was looking into Iran’s possible use of the exchange to get around sanctions, Binance filed a lawsuit.
Reports indicate that the US Department of Justice is investigating Iran’s use of Binance to evade sanctions.
The Wall Street Journal said on Wednesday that the DOJ is looking into whether Iran used Binance to get around US sanctions and whether transactions on the exchange helped send money to networks connected to Iran-backed groups, such as Yemen’s Houthi militants.
The WSJ stated it’s still not clear if the DOJ is looking into Binance itself, its users, or both. The article added that officials had talked to those who know about the transactions to ask for interviews and get proof.
The investigation follows reports that Binance halted an internal inquiry into nearly $1 billion that passed through the platform to a network associated with Iranian proxy groups.
Source: Eleanor Terrett
Binance denies allegations and files defamation lawsuit
Binance says the claims are false and is suing The WSJ for defamation. It has also sued the publication for defamation in the Southern District of New York, asking for damages and legal fees and a jury trial.
The company added that its internal investigation was still going on and had found a complex pattern of financial activity that crossed borders and involved many countries in Asia, the Middle East, and other areas.
“We don’t know of any investigations. A Binance representative added, “But as always, we are working with regulators and law enforcement to find out what happened.”
The exchange also linked to a blog post that goes into more depth about the problem. This blog post comes after the exchange’s announcement on February 23, which talks about the fund flows and what Binance calls false charges made against the platform.
Earlier investigations and legal history
In February, Democrats in the US Senate started an investigation, and Binance has always said it did nothing wrong.
In 2023, Binance admitted to breaking US laws against money laundering and sanctions. It paid a $4.3 billion fine and agreed to run its business under US supervision.
Changpeng “CZ” Zhao, the former CEO of Binance, pleaded guilty to charges that were related to the case and served four months in jail in 2024. In October 2025, US President Donald Trump forgave CZ.