The U.S. Justice Department is investigating whether Iranian networks used cryptocurrency exchange Binance to move funds and evade American sanctions, according to a report by The Wall Street Journal.

The probe focuses on more than $1 billion in crypto transfers that allegedly passed through the platform to entities linked to Iran-backed groups, including Yemen’s Houthi militants.

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The investigation follows reports that Binance wound down an internal review that had identified around $1.7 billion in flows from mainly Chinese clients to digital wallets associated with Iranian proxies.

Inquiry Examines Iran-Linked Crypto Flows

It includes funds allegedly routed via Hong Kong-based payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term firm Blessed Trust. The Wall Street Journal said officials have contacted individuals with knowledge of the transactions but added it is unclear whether authorities are scrutinizing Binance itself, its users, or both.

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Amid the claims, the exchange has filed a defamation lawsuit against Dow Jones, the publisher of The Wall Street Journal.

The lawsuit, filed in the Southern District of New York, claims the WSJ falsely stated that Binance fired staff who raised compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term concerns and mishandled Iran-linked transactions. It argues that those employees left over alleged internal data protection violations instead of retaliation.

Binance, which pleaded guilty in 2023 to U.S.anti-money-laundering and sanctions violations and agreed to a $4.3 billion settlement and compliance monitoring, said it did not directly transact with sanctioned entities and worked with law enforcement to dismantle the network.

Binance Cites Cooperation with Law Enforcement

The exchange said its investigation showed only about $24 million ultimately entered wallets tied to Iran’s Islamic Revolutionary Guard Corps and that accounts linked to the intermediary network have been closed.

A separate Senate inquiry led by Senator Richard Blumenthal is also seeking records on Binance’s handling of the Iranian-related activity, citing the Journal’s reporting.

Keep reading: Iran Crypto Market “In the Dark”: Trading Volumes Plunge 80% After Strikes

Meanwhile, Binance.US has moved to refresh its executive ranks, appointing Stephen Gregory as CEO while Norman Reed shifts into an advisory role. Gregory, who took over on March 9, previously led Currency.com’s U.S. business through its 2025 acquisition and has held senior compliance roles at Gemini and CEX.io.

The exchange is positioning the leadership change as the next step in its U.S. growth strategy after a period of regulatory pressure that has included enforcement actions and tighter scrutiny of its business model. Gregory’s appointment comes as Binance.US tries to move past those challenges