Binance CEO Richard Teng has publicly denied a report from Fortune alleging the exchange enabled more than $1 billion in Iran-linked sanctions violations and dismissed compliance investigators who uncovered the activity.
The allegations, published on February 13, 2026, claim that internal investigators identified significant suspicious transfers tied to Iranian entities and were later terminated after documenting their findings.
What the Report Alleged
According to the Fortune investigation:
- More than $1 billion in transfers connected to Iranian entities were reportedly flagged between March 2024 and August 2025.
- The transactions allegedly involved Tether (USDT) on the Tron blockchain, a network frequently used for cross-border payments due to low fees and fast settlement.
- At least five senior compliance investigators, some with prior law enforcement backgrounds, were reportedly dismissed in late 2025 after documenting the activity.
The report suggests the activity occurred while Binance was operating under heightened regulatory oversight.
Binance’s Official Response
Richard Teng rejected the claims, calling them “categorically false” and “misleading.”
Binance stated that:
- A thorough internal audit, conducted with external legal counsel, found no evidence of the alleged sanctions violations.
- No compliance employee was dismissed for raising concerns or reporting potential sanctions breaches.
Former CEO Changpeng Zhao (CZ) added that Binance runs all transactions through third-party anti-money laundering (AML) monitoring systems, including tools from Chainalysis and TRM Labs. According to the company, such significant sanctions-related activity would have been flagged by these systems.
Why This Matters Now
The allegations are particularly sensitive given Binance’s regulatory status. In 2023, the exchange reached a $4.3 billion settlement with U.S. authorities over prior AML and sanctions compliance failures. As part of that agreement, Binance operates under a five-year federal monitorship.
Any confirmed new violations during this period could expose the exchange to additional penalties from the U.S. Department of Justice (DOJ) or the Office of Foreign Assets Control (OFAC).
For now, the situation remains a dispute between investigative reporting and corporate denial. The outcome will likely depend on whether regulators pursue further review or request independent verification of the claims.
