Binance’s $8 Billion Iranian Crypto Connection: Exclusive Investigation by Angus Berwick and Tom Wilson
Crypto giant Binance has processed Iranian transactions worth $8 billion since 2018, despite U.S. sanctions aimed at isolating Iran from the global financial system, blockchain data reveals. The majority of these funds, around $7.8 billion, were exchanged between Binance and Iran’s largest crypto exchange, Nobitex, according to data from Chainalysis.
Nobitex, which offers guidance on bypassing sanctions on its website, advised its clients to use Tron, a cryptocurrency that allows for anonymous trading. This recommendation was made to help users avoid sanctions and protect their assets. Binance processed three-quarters of the Iranian funds in Tron, along with other major cryptocurrencies like bitcoin, ether, tether, XRP, and litecoin.
Despite claims by Binance that it follows international sanctions rules and blocks access to Iranian users, the exchange has continued to process Iranian transactions, raising concerns about potential violations of money-laundering regulations. The U.S. Justice Department is currently investigating Binance for possible violations of these laws, as well as for potential breaches of sanctions related to Iran.
The scale of Binance’s Iranian crypto flows, which have not been previously reported, highlights the challenges faced by regulators in monitoring and enforcing sanctions in the rapidly evolving cryptocurrency market. The company’s exposure to Iranian-linked entities has seen a decline following proactive measures taken by Binance, including enhanced transaction monitoring and risk assessments.
The data reviewed by Reuters show that a significant amount of Iranian crypto transactions flowed through Binance, making it the largest market for trading Tron. Despite efforts to restrict Iranian access to the platform, Binance has continued to process Iranian trades, raising concerns about compliance with U.S. regulations.
The findings underscore the complex challenges faced by regulators in overseeing the cryptocurrency industry and enforcing sanctions on entities like Binance. As the investigation into Binance’s activities continues, the company’s handling of Iranian transactions will be closely scrutinized for potential violations of U.S. laws and regulations.
