Binance Sues WSJ, Outlet Reports DOJ is Probing CEX Over Iranian Transactions

According to the Wall Street Journal, the United States Department of Justice (DOJ) has opened an probe into Binance, responding to recent allegations that Iran used the crypto exchange for the purpose of laundering funds and evading sanctions.

What's the Scoop?

• DOJ Investigation: WSJ reports that Binance is the subject of a new DOJ investigation. Last month, the outlet alleged that Binance fired compliance employees for flagging $1B of transactions associated with Iran. Now it claims that DOJ officials have contacted people familiar with the transactions to "seek interviews and gather evidence." It is unclear whether the investigation is focusing on Binance itself, or solely the customers on its platform.
• Counter Suit: In response to the WSJ's initial claims from February, Binance today filed a lawsuit against the publication, seeking monetary damages and other appropriate relief in response to reporting it labeled
  "false and defamatory." A number of other media outlets have issued similar reports, including The New York Times and Fortune.
• Senate Inquiry: U.S. Senator Richard Blumenthal's (D-CT) opened a Congressional inquiry into potential money laundering and sanctions behavior. In an open letter responding to the inquiry, Binance claimed entities engaging in alleged illegal activity only had “indirect exposure to wallet addresses with potential ties to Iran," adding that the clients in question were removed after law enforcement inquiries.
• Previous Settlement: Binance and former CEO Changpeng "CZ" Zhao previously pleaded guilty to unrelated federal money laundering and sanctions evasions charges in November 2023. The defendants paid $4.3B in penalties, CZ went to prison (before being pardoned by President Trump), and Binance agreed to remedial compliance monitoring stipulations (which were withdrawn last year).