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Binance Disputes Wall Street Journal’s Claims About Compliance Investigation Firings
Cryptocurrency exchange Binance has vehemently denied allegations published by The Wall Street Journal that it terminated employees who were investigating potentially sanctioned funds moving through its platform.
In a strongly worded response on Tuesday, Binance co-CEO Richard Teng took to social media platform X to accuse the WSJ of “inaccurate reporting about our compliance program.” Teng’s post included a letter from the exchange’s legal counsel in New York City claiming the newspaper had published “defamatory claims” despite Binance’s attempts to “set the record straight.”
The Wall Street Journal article, published Monday, alleged that Binance fired staff investigators who had identified approximately $1 billion flowing to “a network funding Iran-backed terror groups.” According to the report, which cited internal Binance documents and statements from individuals familiar with the company’s operations, the crypto exchange dismantled an internal investigation into these suspicious transactions.
This isn’t the first time Binance has faced such accusations in recent days. The exchange directed a similar letter to Fortune magazine last week following a comparable article claiming investigators were fired after raising sanctions concerns.
The dispute highlights ongoing regulatory scrutiny of the world’s largest cryptocurrency exchange, which last year settled with the U.S. Department of Justice and other authorities for violating federal money laundering statutes. As part of that settlement, both Binance and its founder Changpeng “CZ” Zhao admitted to compliance failures.
According to the Journal’s reporting, these compliance issues may be ongoing. The article cited documents and foreign law-enforcement officials claiming that “the same conduct that broke the sanctions and anti-money-laundering laws has persisted at the exchange.” It also referenced an additional $1.7 billion allegedly transferred from Binance-registered Chinese clients to Iran-backed groups, including Yemen’s Houthi militants, in 2024 and 2025.
A parallel report from The New York Times published on February 23 made similar claims.
Both publications reported that four individuals who worked in compliance and market oversight roles were dismissed after Binance determined they had failed to adequately escalate red flags related to suspicious trading activity and potential policy violations.
Binance, however, maintains a different version of events. A company spokesperson told industry publication CoinDesk that the exchange had conducted an “internal review and did not find evidence of violations of applicable sanctions laws or regulations related to the transactions described.” The spokesperson emphasized that no investigator was dismissed for raising compliance or potential sanctions issues.
The exchange further argued that the detection and reporting of suspicious activity actually demonstrates that their compliance systems are functioning properly. “This is evidence that our controls are working, not the opposite,” the spokesperson stated.
Rachel Conlan, another Binance representative, informed the Times that an investigation is ongoing and that a full report would be submitted to the U.S. Justice Department on February 25.
In a preemptive blog post published Sunday before the Wall Street Journal’s report, Binance claimed its “sanctions-related exposure is minimal” and characterized recent media coverage as “at best, inaccurate.”
“It presents a distorted, jumbled account that relies on false claims by disgruntled former employees,” the blog post stated. “This incomplete and flawed viewpoint reflects a lack of understanding of general compliance control processes for crypto exchanges.”
The dispute comes at a sensitive time for the cryptocurrency industry, which continues to face regulatory challenges worldwide. Binance, as the market leader, has been under particular scrutiny from regulators concerned about money laundering, sanctions evasion, and consumer protection.
Financial industry observers note that compliance issues in cryptocurrency exchanges remain a central concern for regulators globally as they attempt to bring the rapidly evolving sector under appropriate oversight while balancing innovation with security concerns.
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18 Comments
It’s concerning to see these allegations against Binance. While they deny the claims, we should wait for more details and investigation before drawing conclusions. Compliance and anti-money laundering efforts are critical for the crypto industry’s reputation.
I agree, maintaining high compliance standards is crucial for crypto exchanges. Transparency and accountability will be important as this plays out.
The crypto space is still maturing, and these types of regulatory and compliance issues are not surprising. I’m curious to see how Binance responds long-term and whether this leads to tighter controls across the industry.
Agreed. Crypto exchanges need to demonstrate they can effectively police their own platforms to maintain public trust.
Crypto exchanges need robust compliance programs to prevent misuse. While Binance denies the allegations, the reported $1 billion in suspicious transactions is concerning. I hope this leads to improvements in the industry’s controls.
This is a sensitive topic involving potential sanctions violations and terror financing. I hope the authorities thoroughly investigate the claims and facts, regardless of Binance’s response. Public trust in crypto exchanges is crucial.
Well said. Transparency and accountability are key, especially for major crypto platforms handling large sums of money.
These accusations against Binance are troubling, if true. Crypto firms must be vigilant in preventing their services from being exploited for sanctions evasion or terrorist financing. I hope Binance can conclusively refute the WSJ’s claims.
Agreed. Maintaining robust compliance programs is essential for crypto platforms to build trust and credibility with regulators and the public.
This is a complex issue involving sanctions, terrorism financing, and crypto compliance. I’m curious to see what evidence comes to light and how Binance addresses these accusations. The crypto industry needs to be vigilant against illicit activities.
Absolutely, the industry must take these concerns seriously and demonstrate strong efforts to prevent exploitation by bad actors. Binance’s response will be closely watched.
Allegations of sanctions violations and terror financing are very serious. While Binance disputes the claims, they need to provide clear evidence to back up their position. The crypto sector must uphold the highest standards of compliance and integrity.
Interesting claims, but Binance seems to be strongly denying the allegations. I wonder what the full story is and if there’s more context we’re missing. It’s important to get all the facts before jumping to conclusions on such a serious matter.
Agreed, we should wait for more details to emerge before forming opinions. These types of compliance and sanctions issues can be complex.
Crypto exchanges must take sanctions and anti-money laundering rules seriously. While Binance denies wrongdoing, the reported scale of the alleged issues is worrying. Stronger compliance and transparency may be needed industry-wide.
I’m interested to see how this situation unfolds. Crypto exchanges have a responsibility to ensure their platforms are not being misused for illicit financial flows. Transparency and cooperation with authorities are crucial in these cases.
This is a complex and high-stakes issue. I hope the authorities get to the bottom of the claims and ensure compliance, regardless of Binance’s response. Crypto needs to demonstrate it can police itself effectively.
Well said. Maintaining trust in the crypto ecosystem is critical, so thorough investigations are warranted.