Binance, one of the world’s largest cryptocurrency exchanges, is facing fresh scrutiny over its compliance operations as several staff members overseeing financial crime monitoring and sanctions checks have parted ways with the company. Reports have surfaced that Chief Compliance Officer Noah Perlman is currently discussing his own future with the company, raising questions about leadership continuity at a critical time. Binance, founded in 2017 by Changpeng Zhao, has grown rapidly and now serves millions of users worldwide, offering trading in a wide range of crypto assets. The company has faced multiple regulatory challenges in recent years and remains a dominant player in the digital asset ecosystem.
The recent staff departures come on the heels of Binance’s $4.3 billion US settlement related to violations of the Bank Secrecy Act and American sanctions laws. Perlman, who joined Binance in January 2023 to lead compliance reforms, was brought in as part of major changes following the settlement.
Compliance leadership under pressure
Noah Perlman was appointed to spearhead Binance’s global compliance overhaul after the company admitted to breaking US laws and agreed to pay $4.3 billion. This settlement resolved charges brought by US authorities regarding severe lapses in anti-money-laundering and sanctions compliance. The deal included a $2.5 billion forfeiture and a $1.8 billion criminal penalty.
Perlman’s possible departure is being discussed internally and could occur within the next year. Although Binance confirmed there is no fixed timeline or named successor for the role, attention has intensified over the stability of its compliance team.
Binance stated that Perlman remains focused on his current responsibilities overseeing compliance, with no immediate plans reported for his exit. The company did not identify who might replace him if he steps down.
The compliance team’s turnover follows significant regulatory actions and raised concerns among market observers about the effectiveness of Binance’s internal controls and compliance framework.
Focus on compliance progress and criticism
In response to US regulatory demands, Binance has invested heavily in expanding its compliance function. The company said it increased compliance staff by over 30 percent since last year and achieved a 96 percent reduction in exposure to illicit activity between January 2023 and June 2025.
Perlman highlighted these figures in a March update, describing the sharp decline in illicit exposure as evidence that compliance systems are working proactively.
A 96% reduction in illicit exposure is a testament to the effectiveness of our compliance efforts. Our technology does not simply respond to problems, but is designed to anticipate them.
Binance also reported that its exposure to sanction-related activity dropped from 0.284 percent in January 2024 to 0.009 percent by July 2025, processing more than 71,000 requests from law enforcement agencies.
Despite these improvements, an investigation by the Financial Times challenged Binance’s self-reported progress. The FT claimed that some suspicious accounts linked to terror financing continued operating after the US settlement, and that large amounts continued moving through the platform.
In recent years, US regulators have secured more than $32 billion in settlements from crypto firms. Treasury Secretary Janet Yellen has previously accused Binance of allowing funds to reach sanctioned actors and failing to prevent money laundering as required.
