- The Wall Street Journal claims Binance helped Iran-linked groups dodge US sanctions.
- The lawsuit reportedly claims that at least 11 specific points in the WSJ piece are wrong.
- Binance says it doesn’t knowingly allow sanctioned users to use the platform.
Binance filed a defamation lawsuit against The Wall Street Journal on March 11 over a story claiming the exchange helped Iran-linked groups dodge US sanctions.
The whole thing traces back to a February 23 WSJ piece that made a few key claims. For instance, the article wrote how the DOJ (Department of Justice) is looking into whether Binance helped Iran-linked players evade US sanctions.
Additionally, the WSJ piece stated that more than $1 billion in transactions tied to Iran, with some proxy groups under the microscope, and that Binance reportedly shut down an internal probe into those suspicious flows.
Binance pushed back hard, calling the article false and defamatory. The exchange also argued it hurt the company’s reputation while giving readers the wrong idea about its compliance work. The lawsuit reportedly claims at least 11 specific points in the WSJ article are wrong, and aims to set the record straight on how Binance actually tracks shady activity.
Related: US Federal Court Dismisses All Claims Against Binance in Anti – Terrorism Lawsuit
The DOJ Investigation
According to the WSJ, US investigators are looking into whether Iranian networks used Binance wallets and middlemen to shuffle money across borders despite sanctions.
The story laid out a few important elements:
- Over $1 billion moved through a Hong Kong firm via Binance-linked wallets.
- Some of those transactions may connect to Iran-backed groups like the Houthis.
- Binance employees allegedly flagged around $1.7 billion in suspicious activity tied to Iranian networks.
It’s not clear yet whether the DOJ investigation is actually targeting Binance or just looking into how Iranians might have used it.
Binance says it doesn’t let sanctioned users use the platform on purpose and claims it froze the accounts in question as soon as suspicious activity was spotted.
This story is particularly sensitive because Binance already faced regulatory issues in the past. For instance, back in 2023, it pleaded guilty to US anti-money-laundering and sanctions charges and paid $4.3 billion, which was one of the biggest fines that the crypto industry has ever seen.
As part of the deal, Binance also agreed to be monitored by US regulators until 2029.
Additionally, just before the WSJ dispute blew up, a federal judge dismissed a case accusing Binance of helping finance terrorism tied to dozens of attacks, from 2017 to 2024. The court said plaintiffs didn’t prove Binance knowingly backed terror groups, but they could amend the case and try again.
Related: Binance Denies US Senator’s Claims on Iranian Accounts, Defends Compliance Measures
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