Changpeng Zhao, the founder of the world's largest cryptocurrency exchange Binance, was seen entering a federal courthouse in Seattle on 30 April 2024, as reported by The Seattle Times via AP. This appearance comes amid escalating scrutiny over the platform's international dealings and regulatory compliance issues.
Internal Investigation Uncovers Billions in Suspected Iranian Transactions
According to a detailed report from the New York Times, shortly after former President Donald Trump pardoned Changpeng Zhao in the autumn, Binance employees revealed that the cryptocurrency exchange may have funded Iranian entities with billions of dollars. A group of internal Binance investigators discovered that individuals in Iran had accessed more than 1,500 accounts on the crypto platform.
The Wall Street Journal further reported that at least two of those accounts allegedly saw $1.7bn move to Iranian-backed groups throughout 2024 and 2025. These groups included Yemen's Houthi militants, who have been involved in regional conflicts and are subject to international sanctions.
Company Response and Employee Disciplinary Actions
The internal investigators claim they reported these suspicious transactions to Binance's executives, but were subsequently disciplined for their actions. At least four employees were reportedly fired or suspended on allegations of violations of company protocol concerning the handling of client data.
In a statement provided to the Guardian, a Binance spokesperson denied any wrongdoing, stating: The company did not violate sanctions laws in respect of the transactions described. The spokesperson also refuted claims that investigators were dismissed for raising compliance concerns, asserting: No investigator was dismissed for raising compliance concerns or for reporting potential sanctions issues.
Background on Changpeng Zhao and Binance's Legal Troubles
Changpeng Zhao founded Binance in 2017, and it rapidly grew to become the dominant force in global cryptocurrency trading. However, in 2023, Zhao pled guilty to charges of money laundering and resigned from the company. He was sentenced to four months in prison and agreed to pay a $50 million fine as part of his guilty plea, with a prohibition from any future involvement in the business.
In a controversial move, Donald Trump pardoned Zhao in October, downplaying the severity of the crimes. Trump told reporters: They say what he did was not even a crime. It wasn't a crime. That he was persecuted by the Biden administration and so I gave him a pardon at the request of a lot of very good people.
Binance's Broader Legal and Regulatory Challenges
Binance itself pled guilty in 2023 to three criminal charges, agreeing to internal monitoring and a criminal fine of nearly $1.81 billion, along with an additional $2.51 billion order of forfeiture. The company committed to targeting bad actors who used its platform for illicit financial transactions, including customers from Iran.
The New York Times reported that the Iranian transactions were uncovered internally before Trump's pardon of Zhao. The entities that allegedly received the funds include a chief foreign adversary that the Trump administration had reportedly been planning to strike, adding a layer of geopolitical complexity to the situation.
Neither Binance nor the White House immediately responded to requests for comment on these latest allegations, leaving many questions unanswered about the extent of the transactions and their implications for international sanctions enforcement.
