Binance faces renewed scrutiny after a former senior financial crime investigator accused management of ignoring warnings about suspected Iran-linked accounts. The investigator told IRS agents that approximately 2,000 accounts moved $1.2 billion through the exchange.
The allegations have intensified a federal investigation involving Binance and several former employees. However, the exchange disputes claims that management obstructed sanctions investigations.
Former Investigator Details Internal Binance Probe
According to Forbes, the investigator discussed an internal investigation called Operation Loclock during an IRS interview in May. The probe targeted accounts suspected of facilitating transactions involving Iran. He alleged that management ignored repeated requests to investigate the accounts.
Additionally, Binance suspended him and several colleagues following their investigation. The former employees later left the exchange. However, Binance maintains that it dismissed investigators over customer data privacy violations.
DOJ and IRS Expand Investigation
Meanwhile, the DOJ and IRS have issued multiple subpoenas and search warrants involving Binance and former employees. Authorities also ordered another former investigator to testify before a federal grand jury.
Significantly, the allegations revive concerns about Binance’s previous sanctions compliance failures. In 2023, the exchange pleaded guilty and paid $4 billion over compliance violations. Founder Changpeng Zhao also received a presidential pardon in 2025.
Nevertheless, Binance says it continues cooperating with law enforcement. No criminal charges have emerged from the latest investigation.
Related: Ethereum Foundation Faces Lawsuit After Former Employee Challenges Alleged Retaliatory Firing
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