Binance CEO Richard Teng publicly rejected a Wall Street Journal report alleging that Iranian financier Babak Zanjani used Binance as part of a payment network tied to Iran‑linked financing. The WSJ reported that the network processed roughly $850 million over two years and involved accounts accessed from the same devices—an overlap Binance investigators had internally flagged.
Teng called the report “fundamentally inaccurate” on X, arguing that the transactions cited occurred before sanctions were imposed on the individuals involved. Binance reiterated that it does not permit transactions with sanctioned persons and accused the WSJ of conflating broader blockchain activity with flows that actually passed through the Binance platform.
Binance’s position: the WSJ overstated the exchange’s role by treating on‑chain movement as equivalent to Binance‑facilitated transactions, a distinction the company says is critical for sanctions‑compliance analysis.
What the WSJ Report Claimed
According to the WSJ, Zanjani—an Iranian businessman previously convicted in Iran for corruption—allegedly operated a network of intermediaries who used Binance accounts to move funds tied to Iran‑linked financing. The report said:
- The network totaled ~$850 million in flows over two years.
- Several accounts were accessed from the same devices, suggesting coordinated control.
- The main account reportedly remained open for at least 15 months despite internal flags.
Binance did not dispute that investigators identified device‑linked account clusters but argued that the WSJ misinterpreted the findings and ignored the timeline relative to sanctions designations.
Regulatory Pressure: DOJ and Treasury Scrutiny Intensifies
The dispute comes as U.S. authorities continue examining whether Iran used Binance to evade U.S. sanctions, with the DOJ reportedly investigating more than $1 billion in alleged flows routed through Iran‑linked networks.
In May, the U.S. Treasury privately warned Binance that it must fully comply with the independent compliance monitoring program imposed as part of its 2023 guilty plea. Treasury officials cited additional reports of 2024–2025 activity that raised concerns about whether Binance’s monitoring systems were sufficiently robust.
This monitoring program—mandated under the plea agreement—requires Binance to implement enhanced controls, reporting, and third‑party oversight for several years.
Legal Backdrop: Binance’s Defamation Case Against WSJ Remains Active
The Block noted that Binance’s defamation lawsuit against the WSJ over earlier reporting is still ongoing. That case centers on previous WSJ claims about Binance’s internal controls and alleged facilitation of illicit finance—claims Binance says were false and damaging.
The new WSJ report arrives while that litigation is unresolved, adding another layer of tension between the exchange and one of the most influential financial publications in the U.S.
Why This Matters for Crypto Markets
The clash highlights a broader geopolitical and regulatory environment where:
- Sanctions enforcement is becoming a central risk factor for global exchanges.
- Blockchain transparency allows investigators to trace flows, but attribution remains contested.
- Regulators are increasingly willing to revisit past settlements if new activity raises red flags.
For traders, the episode underscores how compliance narratives can influence exchange stability, liquidity flows, and market sentiment—especially when tied to U.S. sanctions policy.
