Nigerian Journal Sustainability Research

Binance Accused of Enabling $1.7 Billion in Transfers to Iran-Linked Terror Financing Networks

2026-08-22
The Core Allegation

Cryptocurrency exchange Binance allegedly enabled the transfer of more than $1.7 billion connected to Iranian terrorist financing networks over the course of 2024 and 2025, according to a series of investigative reports first published by The Wall Street Journal and The New York Times, and later summarized in an Israeli report from the Meir Amit Intelligence and Terrorism Information Center (ITIC). The reporting draws on internal Binance compliance documents and findings from U.S. Department of Justice investigations, alleging that funds moved from Chinese-linked Binance accounts to a cluster of Iran-connected wallets known internally as "Entity A," which in turn funneled a portion of that money to Nobitex, Iran's largest crypto exchange, and to wallets tied to U.S.-designated terrorist groups including Iran's Islamic Revolutionary Guard Corps (IRGC) and Yemen's Houthi militants.

How the Scheme Reportedly Worked

According to documents reviewed by Fortune, the Iran-linked wallet cluster received the $1.7 billion via businesses and individuals holding legitimate Binance accounts, including one account tied to a 79-year-old Chinese VIP trader that alone moved $439 million. That particular account was allowed to trade freely for months after suspicious activity began in January 2025, and was only flagged after a law enforcement agency in the Seychelles submitted a formal request to Binance in August concerning what it described as "a serious case involving terrorism financing." Binance says the account was eventually blocked in September 2025 and fully offboarded by January 2026, a timeline some compliance experts have said was slower than it should have been given the red flags involved.

Separately, Senator Richard Blumenthal, in a letter to Binance leadership, cited reporting that two Binance business partners, identified as Hexa Whale and Blessed Trust, acted as intermediaries facilitating trade with Iranian government entities, with Hexa Whale specifically flagged as financing groups like the Houthis.

Beyond the Headline Number

The $1.7 billion figure isn't the full extent of what investigators have alleged. Separate reporting found that Iran's central bank allegedly transferred $107 million in cryptocurrency into Binance accounts, while foreign law enforcement tracked roughly $260 million in additional transactions during 2024 and 2025 between Binance-linked accounts and wallets tied to sanctioned Iranian entities and suspected terrorist financiers. Investigators also flagged a separate digital wallet, held by an unknown user outside Binance, that received funds through the exchange and sent $218 million to an Iranian state financing network in 2023. Beyond Iran specifically, congressional correspondence has also referenced Binance facilitating transactions connected to other U.S.-designated terrorist organizations, including Hamas's Al-Qassam Brigades, Palestinian Islamic Jihad, al-Qaeda, and ISIS, as well as activity tied to sanctioned jurisdictions like North Korea and Syria. Investigators additionally found that sailors on Russia's sanctions-evading "shadow fleet," oil tankers used to transport sanctioned cargo, were being paid salaries through Binance accounts.

The 2,000 Iran-Based Accounts

Alongside the transfer allegations, internal Binance investigators reportedly discovered roughly 2,000 accounts that had been accessed from within Iran, a country under heavy U.S. sanctions, using software designed to mask users' actual location. According to reporting, investigators recommended requiring additional verification from these users, but Binance CEO Richard Teng reportedly rejected that proposal.

Consequences for the Employees Who Flagged It

Perhaps one of the more striking elements of the reporting: the Binance compliance staff who originally flagged these transactions were reportedly suspended or fired following their internal investigations. Binance has attributed those personnel actions to unrelated "violations of company protocol" concerning handling of client data, rather than retaliation connected to the Iran findings, though the timing has drawn scrutiny from lawmakers and reporters alike.

The Backdrop: A Company Already Under Federal Monitorship

This is notable given Binance's recent legal history. In 2023, the exchange pleaded guilty to violating U.S. sanctions and anti-money-laundering laws, a settlement that saw co-founder Changpeng Zhao step down as CEO and serve four months in federal prison. As part of that plea agreement, Binance agreed to operate under monitors reporting to the Department of Justice and Treasury Department. The current allegations, if accurate, suggest the sanctions violations continued even while those monitorship arrangements were supposedly in place, a detail that has drawn particular attention from congressional investigators including Reps. Sean Casten and Gregory Meeks, who sent formal written inquiries to Binance seeking answers.

Binance's Response

Binance CEO Richard Teng has firmly rejected the allegations, calling the reports "false and defamatory." The company says its own internal review found no direct dealings with Iranian entities and has pointed to what it describes as robust compliance, know-your-customer (KYC), and monitoring systems as evidence the claims are overstated or inaccurate.

What Comes Next

Senator Blumenthal has formally opened an inquiry into the matter as Ranking Member of the Senate Permanent Subcommittee on Investigations, while Representatives Casten and Meeks have also sent written questions to Binance leadership. Given the company's existing plea agreement and ongoing federal monitorship, any confirmed violations could carry significant legal and regulatory consequences, though as of the latest reporting, the allegations remain contested, with Binance disputing the characterization of its conduct even as documentary evidence continues to surface across multiple independent investigative outlets.

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