Binance formally responds to allegations of violating Iran sanctions

Binance has rejected allegations that its platform allowed transactions linked to entities in Iran.

The exchange issued a response on March 6 to a letter sent by Richard Blumenthal regarding sanctions compliance and anti-money laundering controls. The inquiry referenced several recent media reports. Binance said those reports contain false and unsupported claims about its compliance program.

Binance said it runs a large compliance operation to prevent sanctioned users from accessing the platform. Identity verification is required for every user, and individuals located in Iran are not allowed to use the exchange.

Compliance program and monitoring systems

According to the company, millions of dollars have been invested in compliance infrastructure in recent years. The compliance team now includes more than 1,500 professionals around the world. Many focus on sanctions monitoring, financial crime investigations, and counter-terrorism financing checks.

More than 25 monitoring tools are used to screen users and review transactions. Customer onboarding checks, sanctions screening, and behavioral analysis are also applied to detect suspicious activity. When concerns appear, cases are reviewed and information can be shared with law enforcement.

The company also pointed to its cooperation with investigators. In 2025 alone, Binance handled more than 71,000 law-enforcement requests. Over the past three years, authorities seized more than $752 million with assistance from the exchange.

Blockchain analytics data cited by Binance shows a decline in exposure to wallets linked to illicit activity. Between January 2024 and July 2025, the share of exchange volume connected to such wallets dropped from 0.284% to 0.009%.

Investigations involving flagged entities

The inquiry also mentioned two trading entities, Hexa Whale and Blessed Trust, which were reported to have indirect exposure to wallet addresses with possible links to Iran.

Binance said it became aware of those concerns after receiving requests from law enforcement in 2025. Investigations were then carried out by the exchange’s internal team. Transaction records were reviewed and user information was provided to authorities.

After the reviews were completed, both entities were removed from the platform. Hexa Whale was offboarded in August 2025, while Blessed Trust was removed in January 2026. Binance said it is not aware of any account on the exchange that directly transacted with an Iran-based entity.

The company also rejected claims that it had identified thousands of Iranian-linked accounts. Binance said it never made such a determination and noted that any attempt to bypass location restrictions using a VPN violates its terms of service.

Binance said it investigates credible risks, removes accounts when necessary, and works with authorities to address potential misuse of its platform.