Key Takeaways
Federal prosecutors are investigating whether Binance allowed Iran to dodge U.S. sanctions, according to Bitcoin Magazine reporting.
According to a report by Bitcoin Magazine, federal prosecutors including the U.S. Department of Justice are investigating whether Binance Holdings Ltd. allowed Iran to evade U.S. sanctions. Citing a Bloomberg report, federal authorities are examining whether the world's largest crypto exchange knowingly permitted Iran-linked entities to trade on its platform.
This follows a recent announcement by the Department of Justice regarding the seizure and forfeiture of $61 million in cryptocurrency allegedly stemming from black-market sales of sanctioned Iranian oil, which the DOJ states was laundered through Binance by Chinese entities. Treasury Secretary Scott Bessent noted that the U.S. began targeting crypto wallets linked to the Iranian regime in April, freezing Iranian crypto mostly in the form of Tether's USDT stablecoin. Additionally, the Treasury designated BitBank, an Iranian crypto exchange, as part of Operation Economic Outcast.
According to reports, Iran has utilized bitcoin and other cryptocurrencies to bypass sanctions and settle cross-border transactions. Binance previously exited the U.S. market and agreed to pay $4.3 billion following allegations regarding virtual theft and terrorism funds, while founder and CEO Changpeng Zhao stepped down after pleading guilty before later being pardoned by President Trump.
Source & Fact-Check Note
https://bitcoinmagazine.com/news/feds-probing-iran-use-of-binance
