Binance Allegations

Binance, a cryptocurrency exchange, is alleged to have funded Iranian entities with billions of dollars, a discovery reportedly made by company employees last fall, according to a report by the New York Times. This information emerged shortly after Donald Trump pardoned Binance founder Changpeng Zhao.

Internal Binance investigators reportedly found that individuals in Iran had accessed over 1,500 accounts on the crypto platform. The Wall Street Journal reported that two of these accounts allegedly transferred $1.7 billion to Iranian-backed groups, including Yemen’s Houthi militants, for transactions spanning 2024 and 2025.

Internal Investigation and Disciplinary Actions

Company investigators stated they reported these alleged transactions to Binance executives, after which they reportedly faced disciplinary action. Reports indicated at least four employees were fired or suspended, with allegations including "violations of company protocol" related to client data.

A Binance spokesperson denied the company violated sanctions laws regarding the described transactions. The spokesperson also stated that no investigator was dismissed for raising compliance concerns or potential sanctions issues.

Changpeng Zhao's Pardon and Legal History

Changpeng Zhao, who founded Binance in 2017, pleaded guilty to money laundering in 2023 and resigned from the company. He was sentenced to four months in prison, agreed to pay a $50 million fine, and was barred from involvement in the business.

In October, Donald Trump pardoned Zhao. Trump stated in October that "They say what he did was not even a crime. It wasn’t a crime," and that Zhao was "persecuted by the Biden administration," leading him to issue a pardon "at the request of a lot of very good people." Trump’s family crypto business, World Liberty Financial, has worked with Binance, and Zhao attended a conference at Mar-a-Lago earlier this month.

Binance's Prior Commitments and Penalties

Binance also pleaded guilty in 2023. As part of a settlement, the company agreed to internal monitoring, a criminal fine of nearly $1.81 billion, and a $2.51 billion order of forfeiture to address three criminal charges. Binance committed to pursuing illicit actors who used its platform for financial transactions, including customers from Iran.

Timeline and Context

According to the New York Times, the internal discovery of the alleged Iranian transactions occurred within the company before Trump's pardon of Zhao. The entities reportedly receiving funds included a foreign adversary that the Trump administration had reportedly considered striking. The White House did not immediately return a request for comment.