U.S. Treasury Presses Binance on Monitoring After Iran-Linked Flow Reports

TLDR

• Treasury reportedly sent Binance a letter tied to its monitoring obligations.
• Reports said over $1B flowed through Binance to Iran-linked entities.
• Binance said it is cooperating with monitors and relevant agencies.
• Binance agreed to pay about $4.3B in penalties in its 2023 settlement.
• Democratic senators have asked DOJ and Treasury to review Binance compliance.

The U.S. Department of the Treasury has reportedly demanded that Binance comply with monitoring requirements agreed to under its 2023 settlement, after reports said more than $1 billion in crypto flowed through the exchange to Iran-linked entities in 2024 and 2025.

The request was sent in a recent Treasury letter, according to reports from The Information and Bloomberg. The letter sought cooperation with the monitoring program tied to Binance’s earlier guilty plea over anti-money-laundering and sanctions violations.

Binance said it is cooperating with its independent monitor and relevant agencies. A company spokesperson said the exchange is providing full transparency and working to strengthen its compliance and anti-money-laundering controls.

The renewed scrutiny comes during heightened U.S. attention on Iran-linked financial activity. U.S. lawmakers and regulators have been examining whether crypto platforms have been used to move funds connected to sanctioned entities.

Treasury Cites Existing Monitor Obligations

Binance’s monitoring requirements stem from its 2023 settlement with U.S. authorities. The exchange pleaded guilty to charges tied to anti-money-laundering and sanctions violations and agreed to pay about $4.3 billion in penalties.

The settlement also required Binance to retain independent compliance monitors. The Justice Department appointed Forensic Risk Alliance’s Frances McLeod for a three-year term, while Treasury’s FinCEN selected Sullivan & Cromwell’s Sharon Cohen Levin for a five-year term.

According to The Information, Treasury Under Secretary for Terrorism Gene Lange reminded Binance of its duty to cooperate fully with the Treasury-imposed monitoring program. The reported letter asked the company to share records, documents and other relevant data in a timely manner.

Binance told The Block that it recognizes the seriousness of past issues and has devoted resources to addressing them. The company said it welcomes feedback from Treasury and views the oversight process as part of improving compliance systems.

Reports Focus on Iran-Linked Accounts

The Treasury request followed reports that crypto funds linked to Iran passed through Binance after the exchange had already entered its U.S. settlement. The Information reported that more than $1 billion moved to Iran-linked groups in 2024 and 2025.

Earlier reports from other outlets also raised questions about Iranian access to Binance accounts. The New York Times reported that internal investigators found more than 1,500 accounts had been accessed from Iran and that about $1.7 billion moved from two Binance accounts to Iran-linked entities, including wallets tied to Iran’s Islamic Revolutionary Guards Corps.

Fortune reported in February that Binance had dismissed investigators who uncovered evidence of Iran-linked flows. Binance disputed that account and denied that any investigator was fired for raising compliance concerns or reporting possible sanctions violations.

The Wall Street Journal also reported in March that the Justice Department was examining Iran’s use of Binance to evade U.S. sanctions after the exchange dismantled an internal probe. Binance has not admitted to new violations in connection with the latest reports.

Lawmakers Increase Pressure on Binance

Democratic lawmakers have pressed federal agencies to review Binance’s sanctions compliance. In February, a group of Democratic senators urged the Justice Department and Treasury to examine whether Binance was violating U.S. sanctions laws.

In April, Sen. Richard Blumenthal requested more information about the monitors required under Binance’s 2023 settlement. His letter cited reports about Iran-linked activity and asked for details on the status of the exchange’s compliance oversight.

The scrutiny also comes after President Donald Trump’s pardon of former Binance CEO Changpeng Zhao, which drew questions from some Democrats. Zhao pleaded guilty in 2023, stepped down as chief executive, paid a $50 million fine and later served four months in prison.

Binance has also faced attention over compliance leadership. Bloomberg reported in April that Chief Compliance Officer Noah Perlman had discussed leaving in 2026 or 2027. Binance said Perlman had no exit date, no successor had been named and he remained focused on the company’s compliance work.

The latest Treasury letter does not amount to a public enforcement action. It places fresh attention on Binance’s duty to cooperate with monitors and provide records tied to potential sanctions risks.

The post U.S. Treasury Presses Binance on Monitoring After Iran-Linked Flow Reports appeared first on CoinCentral.