Binance Takes Wall Street Journal To Court Over Defamatory Iran Claims

By Author: The Law Reporters
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Binance has filed a defamation lawsuit against the Wall Street Journal over claims that the cryptocurrency exchange halted an internal investigation into transactions linked to a network funding Iran-backed terror groups.

The US government is reportedly probing Binance over allegations that Iran used the platform to evade sanctions and move funds illegally, according to the Wall Street Journal report published on Wednesday. Binance has denied these assertions, insisting the investigation continued and took action against relevant accounts.

In February, the Journal reported that Binance, the world’s largest cryptocurrency exchange, allegedly terminated an internal review into over $1 billion in suspicious transactions. The report suggested that employees investigating the matter were dismissed and that the network remained active. Similar claims were also covered by the New York Times.

A Binance spokesperson told the press: “Binance categorically did not dismantle any compliance investigation. The WSJ continues to report falsehoods. Our investigation uncovered a sophisticated, multi-jurisdictional ...
... financial network spanning Asia, the Middle East, and beyond. Relevant accounts were offboarded, and the findings were reported to law enforcement.”

The Department of Justice has not confirmed whether a federal inquiry into Binance is underway. Connecticut Senator Richard Blumenthal has launched his own inquiry into possible sanctions violations by the exchange.

US officials have reportedly contacted individuals familiar with the Iranian transactions to gather evidence, although it remains unclear whether the investigation targets potential misconduct by Binance or its customers.

The news of the alleged probe comes after a separate federal lawsuit against Binance and CEO Changpeng Zhao over anti-money-laundering and sanctions violations, which resulted in a $4.3 billion fine, stricter oversight, and Zhao’s resignation and imprisonment. Under that settlement, Binance agreed to strengthen compliance measures, including a five-year monitoring period and re-screening of all users against sanctions lists. Zhao was later pardoned by former President Donald Trump in October.

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