Binance executives deny allegations of $1.7 billion transfers to Iranian entities, asserting compliance with sanctions and defending employee terminations.
Binance executives, Richard Teng and Noah Perlman, have publicly denied allegations regarding the exchange's involvement in nearly $1.7 billion in transfers to Iranian-linked accounts. The accusations stemmed from reports by major media outlets, including The New York Times and The Wall Street Journal, which claimed that Binance employees were terminated after discovering these transactions.
Teng criticized the media's portrayal, asserting that it misrepresents Binance's commitment to compliance with sanctions. He stated, “The irresponsible media coverage suggests reckless indifference or disregard for our compliance and sanctions obligations, which is simply false and misleading.”
Perlman highlighted that Binance has cooperated with law enforcement, responding to over 71,000 requests and aiding in the seizure of more than $130 million in illicit funds. He asserted that the risk of sanctions violations has decreased by 97% over the past 18 months. He further clarified that an internal review found no evidence of improper transactions at the time they occurred, asserting that any connections to sanctioned entities were identified only after the fact.
In response to the alleged firings, Perlman emphasized that no employees were dismissed for compliance-related concerns, but rather for violations of internal policies. Teng has sent a legal notice to The Wall Street Journal demanding a retraction of their claims, stating that the reports have been misleading despite attempts to clarify the situation.
Background of the Allegations
Reports surfaced that Binance's compliance team uncovered two significant channels directing funds to Iranian entities in mid-2025. One channel involved Hexa Whale Trading Limited, which allegedly funneled $490 million to Iranian-linked wallets, while another involved Blessed Trust, which reportedly transferred $1.2 billion associated with the Islamic Revolutionary Guard Corps.
Following the internal investigation, two compliance staff members were reportedly suspended, leading to further terminations within the department. Binance representatives have stated that measures were taken to remove accounts linked to these transactions and that they have informed authorities of their findings.
Senator Richard Blumenthal has since requested detailed records related to the transactions and the compliance team's terminations, setting a deadline for March 6. Meanwhile, Binance maintains its position that it has made significant strides in enhancing compliance measures, as evidenced by their annual report indicating a 96% reduction in illegal transactions since 2023.
