U.S. federal prosecutors are investigating whether Binance failed to prevent trading that violated sanctions on Iran, widening scrutiny of the exchange's compliance controls nearly three years after its $4.3 billion criminal resolution with the Justice Department.

The probe is being handled by the Manhattan U.S. Attorney's Office, with the Justice Department's Criminal Division in Washington also taking part. Authorities are examining whether Binance knowingly permitted the activity, Bloomberg reported, citing people familiar with the matter.

The disclosure adds detail to a DOJ investigation that first surfaced in March, when it remained unclear whether investigators were examining Binance itself, individual customers, or both.

Prosecutors Examine Binance's Compliance Controls

Binance said it maintains a zero-tolerance policy toward sanctions violations and fully cooperates with law enforcement, adding that it remains committed to identifying and removing bad actors from its platform.

The investigation follows months of disputes over Iran-linked activity. Earlier this year, Binance formally rejected allegations that its sanctions controls were inadequate, stating that users residing or located in Iran are prohibited from the platform and that identity verification is mandatory. Sanctions enforcement has been a recurring theme in U.S. oversight of crypto exchanges, with geolocation checks and screening of sanctioned-jurisdiction users among the controls authorities scrutinize most closely.

Part of the exchange's response centered on Hexa Whale and Blessed Trust, two entities linked to transactions with possible Iranian exposure. Binance said both were investigated after law-enforcement inquiries and subsequently removed from the platform, with Hexa Whale offboarded in August 2025 and Blessed Trust in January 2026.

The company also said its exposure to major Iranian crypto platforms fell 97.3% between early 2024 and mid-2025 as it expanded sanctions screening, geolocation controls and transaction monitoring.

2023 Guilty Plea Remains Central to Scrutiny

Binance pleaded guilty in November 2023 to violations including the Bank Secrecy Act, the cornerstone U.S. anti-money-laundering statute, and the International Emergency Economic Powers Act, the law that underpins U.S. economic sanctions programs. The company agreed to pay $4.3 billion in penalties and retain an independent compliance monitor — an outside reviewer tasked with assessing adherence to the settlement's terms — while strengthening its anti-money laundering and sanctions systems.

The Justice Department said Binance had previously failed to prevent U.S. users from trading with customers in sanctioned jurisdictions, including Iran. Between January 2018 and May 2022, more than $898 million in trades occurred between U.S. users and users ordinarily resident in Iran.

Fresh scrutiny intensified this month after Manhattan prosecutors moved to forfeit $61.2 million in USDT allegedly derived from sanctioned Iranian oil sales. A September 14 civil complaint describes Binance accounts used by entities accused of converting and moving proceeds through a broader network tied to Iranian petroleum transactions.

The current has not produced announced charges against Binance. Prosecutors are examining whether the exchange's post-settlement controls prevented prohibited Iran-linked activity, as required under its strengthened compliance framework. Near-term developments to watch include filings in the USDT forfeiture case and any further disclosure from prosecutors or Binance about the inquiry's scope.