The Manhattan US Attorney’s Office has reportedly expanded its investigation into Binance, focusing on whether the exchange knowingly enabled transactions that contravened US sanctions against Iran. Bloomberg cited individuals with knowledge of the matter, offering an update on the ongoing Justice Department scrutiny that first surfaced in March.
Multiple agencies involved in investigation
Sources revealed that both the Justice Department’s Criminal Division in Washington and the Manhattan office are now engaged in the inquiry. Officials are said to be probing whether Binance, one of the world’s largest cryptocurrency exchanges, may have facilitated illicit trades through its platform.
The investigation has not resulted in any formal charges, and authorities have not made any public statements about its likely outcomes. In previous enforcement actions, the DOJ has taken months or years before determining whether to proceed with criminal indictments.
Binance, founded in 2017 by Changpeng Zhao, has established itself as a prominent global digital asset exchange serving millions of users. The platform’s size and international reach have often put it at the center of regulatory attention.
Mini dictionary: US sanctions on Iran are legal and financial restrictions imposed by the US government to prevent certain business and financial activities with Iranian entities. These measures aim to limit Iran’s access to the global financial system.
Binance responds to scrutiny
Asked about the investigation, a Binance spokesperson told Cointelegraph, “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.” The comment did not specifically address the details of the ongoing probe or whether the company has direct knowledge of the investigation.
Binance stated that it “maintains a zero-tolerance policy for sanctions violations” and continues to “fully cooperate with law enforcement” to remove bad actors from its platform.
Binance reiterated that it works closely with authorities and emphasized its efforts to uphold compliance standards. The company did not elaborate on whether it had been formally notified of any new or ongoing DOJ investigation.
History of scrutiny
The Wall Street Journal previously reported that US officials explored claims that Iran may have used Binance to bypass American sanctions, referencing both internal company memos and external sources. At that time, uncertainty remained about whether the Department of Justice’s inquiry targeted Binance itself, its individual users, or both.
In earlier statements to Cointelegraph, Binance representatives said the company was unaware of any DOJ investigation related to Iran sanctions violations.
Regulatory oversight has increased for cryptocurrency firms operating in the US, especially those suspected of facilitating illicit transactions or circumventing national restrictions. Law enforcement agencies have called for greater transparency from leading exchanges and enhanced anti-money laundering controls.
US lawmakers have also voiced concern about the potential for digital assets to be used in breaching economic penalties, with some senators recently requesting updates from compliance monitors overseeing Binance’s regulatory obligations.
An active criminal investigation does not in itself imply wrongdoing by Binance, and the outcome may depend on the findings of ongoing reviews by DOJ officials in both Manhattan and Washington.
