Binance Under Fresh US DOJ Probe for Iran Sanctions After Richard Teng Pushes Back

Binance is under a fresh US Justice Department (DOJ) investigation over possible Iran sanctions violations. This comes days after co-CEO Richard Teng publicly distanced the exchange from a related civil forfeiture case and highlighted zero tolerance for sanctions violations or illicit activity.

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Binance Under US DOJ Investigation for Potential Iran Sanctions Violation

According to a Bloomberg News report on September 22, federal prosecutors are examining whether Binance violated U.S. sanctions on Iran by failing to stop certain trading on its platform. The probe is led by the Attorney’s Office for SDNY, with the US DOJ’s Criminal Division in Washington, D.C., also involved.

Binance said it has a zero-tolerance policy toward sanctions violations, fully cooperates with law enforcement, and remains “committed to rooting out and shutting down bad actors.”

The US DOJ is yet to reveal charges or details about the potential investigation into Binance. Whether any charges follow will depend on evidence. The US Treasury announced Operation Economic Outcast to expand sanctions on Iran.

The latest report follows a civil forfeiture action seeking about $61 million in crypto tied to black-market Iranian oil sales. Those funds were laundered in part through Binance accounts used by Chinese firms Blessed Trust and Hexa Whale and were intended to finance Iran’s IRGC.

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Richard Teng Defended Crypto Exchange Citing Zero Tolerance

Richard Teng earlier clarified that Binance was not named as a defendant and was not accused of wrongdoing in the DOJ’s $61 million forfeiture case. He said, “We did not permit any transactions with sanctioned individuals.”

He highlighted that the exchange has zero tolerance for sanctions violations or illicit activity. The exchange continued to cooperate with law enforcement on this matter. Binance investigates, restricts or freezes accounts where appropriate, offboards users, and reports to relevant authorities, Teng added.

“We will never compromise on security or compliance. If you seek to use our industry to evade the law, we will find you, freeze you out, and hand you over to the authorities,” he said.

Notably, Binance pleaded guilty to violating anti-money laundering and sanctions laws in a US DOJ lawsuit in 2023. The exchange agreed to pay about $4.3 billion. Founder Changpeng “CZ” Zhao also pleaded guilty, stepped down from the CEO position, and served four months in prison.

Since then, the company has strengthened security, compliance, and coordination with government authorities to prevent illicit finance risks. Web3 enterprises increasingly rely on the best crypto compliance software providers to implement transaction monitoring and strict AML protocols.