Binance is again facing scrutiny over Iran-related transactions, this time under a reported federal criminal investigation examining activity that took place after the exchange’s landmark 2023 settlement with U.S. authorities.
According to a Bloomberg Law report published September 22, prosecutors are examining whether Binance Holdings knowingly allowed trading that violated U.S. sanctions on Iran. The inquiry is reportedly being handled by the U.S. Attorney’s Office in Manhattan with participation from the Justice Department’s Criminal Division in Washington.
The investigation has not resulted in publicly announced charges, and the Justice Department has not formally confirmed the reported probe. The available reporting also does not identify all of the transactions being examined or disclose what evidence prosecutors may have regarding Binance’s internal compliance decisions.
Why Binance’s 2023 Settlement Matters to the New Inquiry
The timing of the reported investigation is particularly relevant because Binance previously admitted to serious compliance failures involving sanctioned jurisdictions.
In 2023, Binance pleaded guilty to violations of the Bank Secrecy Act, failure to register as a money transmitting business and violations of the International Emergency Economic Powers Act. The exchange agreed to a $4.316 billion criminal penalty and forfeiture package and committed to substantial improvements in its anti-money-laundering and sanctions compliance framework.
U.S. authorities said at the time that Binance had willfully caused more than $898 million in trades between U.S. users and users ordinarily resident in Iran between January 2018 and May 2022.
That earlier case makes the period after the settlement important: the issue is no longer only what Binance’s controls looked like before 2023, but how those controls operated after the company had formally agreed to strengthen them.
Binance has said that its compliance operation has expanded significantly since the settlement. The company reported in 2026 that more than 1,500 employees and service providers, roughly one quarter of its global workforce, perform compliance-related functions.
Iran-Linked Asset Case Adds Context, but Not a Charge Against Binance
A separate enforcement action filed in September has added further attention to the movement of Iran-linked funds through cryptocurrency platforms.
On September 14, Manhattan prosecutors sought forfeiture of approximately $61 million in cryptocurrency allegedly connected to black-market Iranian oil sales. Authorities said Blessed Trust and Hexa Whale used Binance accounts as part of a wider network accused of moving proceeds linked to Iran and the Islamic Revolutionary Guard Corps.
The forfeiture case is directed at the assets and the alleged laundering network rather than Binance itself. Its existence therefore does not establish that the exchange violated sanctions or knowingly facilitated prohibited activity.
The reported criminal investigation goes further by asking what Binance itself knew and how its compliance systems responded to potentially restricted activity. That distinction could become central if prosecutors ultimately decide to pursue a case against the company.
Knowledge Could Become the Central Legal Question
Simply showing that funds associated with sanctioned actors passed through an exchange would not, by itself, answer every question relevant to criminal liability.
Bloomberg reports that prosecutors are examining whether Binance knowingly permitted Iran-related trading that violated U.S. sanctions. That places greater focus on issues such as internal alerts, account reviews, escalation procedures and decisions made by compliance personnel.
Binance has publicly emphasized that its sanctions, terrorist-financing and financial-crime teams operate under established legal and compliance procedures. The company maintains that it removes prohibited users and works with law enforcement where required.
What remains unknown is whether prosecutors believe specific post-2023 transactions exposed weaknesses in those procedures or whether the investigation will ultimately conclude without enforcement action.
For now, the case remains at the investigative stage. No indictment, criminal complaint or settlement connected to the reported 2026 inquiry has been announced. Future court filings or statements from the Justice Department would provide the clearest indication of whether the review develops into a formal case against Binance.