Binance probed by U.S. federal prosecutors for sanctions violations: Bloomberg

Federal prosecutors in Manhattan, with assistance from the Justice Department's criminal division in Washington, are investigating whether Binance permitted trading that breached U.S. sanctions on Iran, Bloomberg reported, citing people familiar with the matter. The inquiry is examining whether the exchange allowed specific trading activity to continue despite awareness that it would violate sanctions laws. The sources spoke on condition of anonymity.

Binance responded by saying it maintains a zero-tolerance policy for sanctions violations and that it fully cooperates with law enforcement. The company has repeatedly defended its compliance program since pleading guilty in 2023 to banking compliance lapses and agreeing to a $4.3 billion settlement with U.S. authorities.

The current probe follows several prior reports and inquiries into Binance's handling of user data and potential facilitation of transactions involving sanctioned entities. In March, Binance filed a defamation lawsuit against Dow Jones after a Wall Street Journal report said the Justice Department was investigating alleged Iranian use of the platform, a claim Binance executives disputed. In April, the New York Times reported that Binance had made it harder for some foreign law enforcement agencies to obtain user information.

U.S. lawmakers have also shown interest: Senator Richard Blumenthal opened a probe in February into alleged sanctions-related activity at Binance involving $1.7 billion, which Binance said found no supporting evidence. The Justice Department and the Manhattan U.S. Attorney's Office did not immediately comment to CoinDesk, according to the Bloomberg coverage.

Binance has emphasized its continued cooperation with authorities and its stance that it does not permit transactions with sanctioned individuals or entities. The Bloomberg report does not indicate whether the investigation has produced charges or other enforcement actions to date.