DOJ investigates Binance over potential Iran sanctions violations

What happened

Federal prosecutors are investigating whether Binance Holdings Ltd., operator of the world’s biggest crypto exchange, violated US sanctions on Iran by not stopping certain trading on its platform, Bloomberg reported on September 22, 2026. The probe is being handled jointly by the Manhattan US Attorney’s Office and the Department of Justice’s (DOJ) criminal division in Washington. Investigators are examining whether Binance knowingly allowed the trading to continue.

The investigation follows a civil forfeiture action filed by Manhattan federal prosecutors on September 14, 2026, seeking approximately $61 million in cryptocurrency tied to black market Iranian oil sales. That earlier filing named two Chinese companies, Blessed Trust and Hexa Whale, alleged to have used Binance trading accounts to launder proceeds as part of a wallet network that handled more than $1.5 billion in illicit Iranian oil money.

As of September 24, 2026, prosecutors had not filed charges against Binance or any of its employees in connection with the new investigation. Binance said in a statement: “We maintain a zero-tolerance policy for sanctions violations. We fully cooperate with law enforcement, and we remain committed to rooting out and shutting down bad actors.”

Binance has faced US sanctions scrutiny before. In November 2023, the exchange pleaded guilty to Bank Secrecy Act and sanctions violations, admitting to more than 1.6 million apparent sanctions violations involving US persons and sanctioned territories, and paid total penalties exceeding $4.3 billion, split between forfeiture and a fine. In February 2026, Senator Richard Blumenthal separately opened an inquiry into alleged Iran and Russia sanctions violations by the exchange.

Why it matters

No charges have been filed, and Binance denies wrongdoing, so this is an active investigation, not a finding. What makes it significant is the pairing with the September 14 forfeiture action: prosecutors appear to be working from a specific transaction trail, the Blessed Trust and Hexa Whale wallet network, toward a broader question of whether the exchange itself knowingly permitted that activity.

This is Binance’s second live brush with Iran sanctions scrutiny in seven months, following Senator Blumenthal’s February inquiry. Read together, the pattern suggests US authorities see Binance’s 2023 settlement as a starting point for continued monitoring rather than a closed chapter, despite the exchange’s post settlement compliance commitments.

For any institution that treats a 2023 guilty plea and settlement as evidence a counterparty’s sanctions risk has been resolved, this investigation is a reminder that a settlement addresses past conduct. It does not certify that current controls are working.

Practitioner angle

• Review counterparty and customer due diligence files that reference Binance as an exchange used, a source of funds, or a settlement venue, and confirm risk ratings reflect this active investigation, not just the 2023 settlement.
• Treat the Blessed Trust and Hexa Whale wallet network, and any addresses associated with the $1.5 billion Iranian oil laundering scheme referenced in the September 14 forfeiture action, as a live screening priority if your institution has crypto exposure.
• Do not record Binance’s post settlement compliance program as a closed risk item in ongoing monitoring. A 2023 guilty plea establishes historical conduct; it does not establish that current controls prevent a repeat.
• Sanctions and fraud teams at institutions with crypto exchange relationships should confirm their enhanced due diligence cycle would catch a pattern of sanctioned jurisdiction trading continuing after a major settlement, since that is the specific question prosecutors are now asking about Binance.

The single most important action: pull any historical or current exposure to Binance, or to the Blessed Trust and Hexa Whale wallet network, and confirm it has been screened against this investigation, not just against the 2023 settlement.