Binance Refutes Sanctions‑Evasion Allegations, Cites 97 % Reduction in High‑Risk Exposure
By Crypto News Desk – 24 Feb 2026
Executive summary
- Binance says its exposure to sanctioned parties has fallen by roughly 97 % since January 2024.
- The exchange disputes recent media reports that claim investigators were fired after flagging over $1 billion in Iran‑related transactions.
- Independent blockchain analytics confirm that Iranian‑linked wallets have amassed sizable stable‑coin balances, highlighting broader compliance challenges for the crypto sector.
Background
In early February, a series of investigative pieces surfaced accusing Binance of facilitating sanctions violations involving Iranian counterparties. A Fortune article (13 Feb 2026) alleged that several compliance investigators were dismissed after reporting more than $1 billion in USDT transfers on the Tron network tied to Iranian entities. The report also noted the departure of four senior compliance staff members over the preceding three months.
Separately, analytics firm Elliptic reported in January that wallets associated with the Central Bank of Iran had accumulated over $500 million in USDT, suggesting the use of stablecoins to skirt traditional banking restrictions.
These revelations arrived amid ongoing scrutiny of Binance’s compliance framework, which was reshaped after the exchange pleaded guilty to anti‑money‑laundering (AML) and sanctions breaches and agreed to a $4.3 billion settlement with U.S. regulators in 2023.
Binance’s response
Binance issued a detailed blog post and a series of public statements to counter the allegations:
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Exposure metrics – The exchange released internal data showing that the proportion of its total trading volume linked to sanctioned entities dropped from 0.284 % in January 2024 to 0.009 % in July 2025, a decline of 96.8 %. Direct ties to the four largest Iranian crypto exchanges fell from $4.19 million to roughly $110,000, a 97.3 % reduction.
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Compliance program – Binance describes its compliance infrastructure as “best‑in‑class” and asserts that it continuously refines its monitoring tools. In 2025 the platform processed more than 71,000 law‑enforcement requests and assisted in confiscations exceeding $131 million.
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Internal reviews – The two entities highlighted in the media reports were examined through structured internal audits. Binance says both were not listed on any sanctions watchlists at the time of their activity, and their transactions did not trigger alerts from industry‑standard monitoring systems.
- Staff departures – Contrary to claims of retaliation, Binance maintains that several employees left after internal investigations uncovered breaches of data‑protection and confidentiality policies. Former CEO Changpeng Zhao dismissed the narrative as unfounded “FUD” (fear, uncertainty, doubt) propagated by “unhappy” anonymous sources.
Binance also emphasized that the information presented by external outlets was “incomplete and mischaracterized,” arguing that it fails to capture the full context of the exchange’s compliance efforts.
Independent analysis
While Binance’s internal figures demonstrate a dramatic reduction in high‑risk exposure, the broader industry landscape remains fraught with challenges:
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Stablecoin usage as a bypass tool – Elliptic’s data underscores the growing reliance on USDT and other stablecoins to move value across borders where fiat channels are limited. This trend is not exclusive to Binance and poses a systemic risk for regulators seeking to enforce sanctions.
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Monitoring limitations – Even sophisticated analytics platforms can miss nuanced activity, especially when transactions are fragmented across multiple chains or layered through mixers. The fact that Binance’s own tools did not flag the flagged Iranian activity raises questions about the sensitivity thresholds being employed.
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Regulatory pressure – Binance is still operating under the compliance reforms stipulated in its 2023 settlement. Continued scrutiny from U.S., European and Asian regulators means that any perceived lapse could trigger additional enforcement actions.
- Peer comparison – According to Binance, its risk‑reduction performance outpaces that of ten major global exchanges. However, without a transparent, third‑party audit, these comparative claims are difficult to verify independently.
Key takeaways
- Significant exposure decline – Binance reports a near‑total (≈ 97 %) cut in volume linked to sanctioned Iranian entities between early 2024 and mid‑2025.
- Disputed staff dismissals – The exchange denies that investigators were terminated for raising compliance concerns, attributing departures to internal policy breaches.
- Stablecoins remain a compliance focal point – Large USDT holdings in Iranian wallets highlight the continuing use of stablecoins to evade traditional financial controls.
- Regulatory environment stays tight – Post‑settlement, Binance must maintain rigorous AML and sanctions screening to avoid further penalties.
- Need for external verification – Independent audits or regulator‑led reviews would enhance credibility of Binance’s self‑reported risk metrics.
Outlook
The crypto industry is witnessing heightened attention on how exchanges monitor and block sanctioned activity, especially as stablecoins become the medium of choice for cross‑border value transfers. Binance’s claim of a 97 % reduction in exposure may set a benchmark for peers, but it also invites closer examination from regulators and third‑party auditors. Stakeholders will likely watch for:
- Formal audits of Binance’s compliance data by recognized firms.
- Regulatory filings that either corroborate or dispute the exchange’s internal statistics.
- Further investigative reporting into the use of stablecoins for sanctions evasion across other platforms.
For now, Binance maintains that its compliance program is robust and continually improving, while the debate over its past conduct and the veracity of its exposure figures continues to unfold.
Sources: Fortune (13 Feb 2026), Elliptic blog (Jan 2026), Binance blog post (Feb 2026), Binance X post (2026), Binance settlement coverage (Cryptopotato, 2023).
Source: https://cryptopotato.com/binance-rejects-sanctions-evasion-claims-reports-97-drop/
