- Binance faces fresh scrutiny over $1B in Tron-based Tether transactions since 2024.
- Multiple senior compliance staff departed, raising concerns about internal oversight.
- Zhao defends Binance, citing AML tools and broader industry detection limits.
Fresh allegations have placed Binance back under regulatory scrutiny, even as the exchange continues operating under a U.S. government monitorship. Reports claim that internal investigators identified transactions linked to Iranian entities after the company’s 2023 settlement.
The findings reportedly covered activity between March 2024 and August 2025. Besides raising compliance concerns, the developments triggered questions about leadership stability and internal controls at the world’s largest crypto exchange.
Sources cited in recent coverage said investigators traced more than $1 billion in transactions involving Tether on the Tron blockchain. They reportedly escalated the concerns through internal reports.
However, at least five compliance staff members left the company starting in late 2025. Several had law enforcement backgrounds and led global financial investigations. Additionally, other senior compliance officials exited in recent months.
Binance declined to discuss personnel matters and ongoing investigations. The company said it remains committed to sanctions compliance in every jurisdiction where it operates. Moreover, Binance stated that it continues working with law enforcement partners to protect users and the broader ecosystem.
Zhao Responds to Narrative Claims
Changpeng Zhao, Binance co-founder and former CEO, publicly questioned the narrative surrounding the departures. He said the article relied on anonymous and potentially biased sources.
Additionally, Zhao argued that one could create alternative explanations for the firings. For example, he suggested critics might claim investigators failed to prevent potential violations.
Zhao also emphasized that Binance screens every transaction through multiple third-party anti-money laundering tools. Those tools often align with systems used by law enforcement agencies. Hence, he implied that any alleged oversight would reflect broader industry detection limits rather than isolated internal failure.
Zhao stepped down in 2023 after pleading guilty to failing to implement proper oversight. He later served a four-month sentence. Consequently, Binance entered a new compliance phase under CEO Richard Teng.
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Oversight, Politics, and Internal Shifts
The reported firings coincided with political developments in the United States. President Donald Trump rolled back certain crypto oversight measures.
Additionally, he granted Zhao a pardon in October following lobbying efforts. Binance also supported the Trump family’s crypto project, World Liberty Financial, in launching a stablecoin.
Significantly, Binance continues expanding its compliance workforce. The company announced plans to grow its full-time compliance team to 645 employees. However, observers now question whether staffing growth alone ensures effective oversight.
Binance’s leadership has pledged regulatory maturity since its $4.3 billion settlement. Nevertheless, renewed allegations show that the exchange still operates under intense scrutiny. The coming months may determine whether Binance stabilizes its compliance framework or faces additional regulatory pressure.
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