For years, Binance and other major cryptocurrency companies have faced a barrage of accusations and controversy. In February, a flurry of posts claimed Binance was at fault for the major October 10 market crash, sparking calls for a global boycott or at least attempts at one. Now, Binance has announced it is taking legal action against the Wall Street Journal, a development that comes after the newspaper’s reporting became the subject of heated debate among U.S. politicians.
WSJ Investigation Fuels Industry Tensions
Back in February, numerous social media posts asserted that Binance orchestrated, or at least was responsible for, the crash that sent shockwaves through crypto markets last October. These claims ranged from extreme accusations and outright fabrications to misleading AI-generated videos, laying bare just how fierce the rivalry has become among industry players. On February 23, the Wall Street Journal landed what some described as a “knockout blow” with its headline: “Binance is Making Things Easier for Iran.”
Fresh Allegations Prompt Lawsuit
The scrutiny intensified today when the Wall Street Journal reported that the U.S. Department of Justice had launched an investigation into Binance. This coverage appeared to be the last straw for Binance, which promptly filed an official legal complaint. According to the WSJ, the company reportedly ignored billion-dollar transactions tied to Iran and allegedly dismissed internal staff who flagged these irregularities during compliance checks.
The WSJ says it spoke with these former employees and further claims that more than a billion dollars flowed through Binance to groups including the Houthis. Binance, for its part, had previously paid a hefty fine to U.S. authorities for being insufficiently proactive on anti-money laundering (AML) and Know Your Customer (KYC) requirements. That history may explain why the February 23 headline quickly gained traction among critics.
Binance Takes Legal Action
As the world’s largest cryptocurrency exchange by trading volume, Binance is under mounting pressure to respond to such damaging allegations. Following last month’s surge of fear, uncertainty, and doubt—and in the wake of this month’s new investigation reports—the company says the time has come to actively defend itself.
Dugan Bliss, Binance’s Global Head of Legal, explained the rationale for the lawsuit:
“We view this legal action as a necessary step to defend ourselves from misinformation, to hold The Wall Street Journal accountable for prioritizing clicks over journalistic integrity, and to address the significant reputational and business harm we have suffered as a result.
Reports like these erode trust in the broader industry and undermine the efforts of those dedicated to protecting users and fostering positive innovation.
We take great pride in our industry-leading compliance program and remain committed to upholding the highest standards. That commitment is reflected in the confidence more than 300 million users worldwide place in our world-class security and user protection measures each and every day.”
Binance by the Numbers
Binance insists that cold hard statistics tell the real story, and points to its compliance data as evidence of its rigor and transparency.
“Direct exposure between Iran and the four largest crypto exchanges dropped 97.3%—from $4.19 million in January 2024 to just $110,000 in January 2026. In 2025 alone, Binance processed over 71,000 requests from law enforcement agencies worldwide. By collaborating with those agencies and network partners, Binance supported the freezing and recovery of hundreds of millions of dollars linked to illicit activities in 2025.
Binance holds regulatory authorizations and licenses in over 20 jurisdictions and became the first crypto exchange to receive full authorization under the Financial Services Regulatory Authority framework of Abu Dhabi Global Market.”
