Binance Disputes Wall Street Journal Report Alleging $1.7 Billion in Iranian-Linked Crypto Flows

Binance CEO Richard Teng has publicly challenged a report published by The Wall Street Journal that claimed $1.7 billion in cryptocurrency transactions were connected to sanctioned Iranian entities. The exchange asserted that the article contained inaccuracies and misrepresented its compliance practices.

In a statement dated February 23, 2026, Binance disclosed that it had sent a formal letter to the publication demanding corrections and a complete retraction. According to the company, it had responded comprehensively to a series of detailed questions prior to the story’s release, but its explanations were ultimately absent from the published version.

Teng criticized the recent coverage, describing it as “a distorted, jumbled account” that relied on allegations attributed to former employees. Binance maintained that it adhered to established compliance procedures and cooperated with authorities whenever necessary.

The controversy stems from an article headlined “Binance Fired Staff Who Flagged $1 Billion Moving to Sanctioned Iran Entities.” The report alleged that the exchange violated Iranian sanctions and terminated employees who were involved in internal investigations tied to those concerns.

In its formal correspondence to the newspaper, Binance argued that the article falsely accused the company of unlawful conduct and retaliatory dismissals. The exchange characterized the allegations as defamatory and requested that the report be withdrawn pending corrections.

Binance stated that a reporter had submitted 19 detailed points along with additional follow-up questions before publication. The company said it responded promptly and in detail, yet contended that the final piece did not incorporate its clarifications. The former CEO, Changpeng Zhao, also rejected the allegations in public remarks the previous week.

The exchange further denied dismissing any employees for raising compliance-related issues. It said that certain staff departures occurred following internal reviews linked to data protection and confidentiality policies rather than retaliation for whistleblowing.

Addressing its compliance framework more broadly, Binance said it has significantly expanded its oversight infrastructure in recent years. The company reported allocating hundreds of millions of dollars toward strengthening compliance systems and staffing.

As of early 2026, Binance said 593 full-time employees are assigned to its dedicated Compliance unit. An additional 978 employees and contractors provide compliance-related support across other operational areas. Altogether, the company indicated that more than 1,500 individuals are engaged in compliance functions, representing approximately one quarter of its global workforce.

Binance emphasized that its compliance investigations function independently from commercial leadership and that enforcement decisions are guided strictly by applicable law and internal procedures.

The company also highlighted its regulatory footprint, stating that it holds licenses, registrations, or authorizations in 20 jurisdictions worldwide. Among these, Binance pointed to its authorization under the Financial Services Regulatory Authority framework within Abu Dhabi Global Market.

Turning to sanctions exposure metrics, Binance reported a sharp reduction in sanctions-related activity over the past two years. Citing company data based on independent industry analysis, it said such exposure declined from 0.284% of total exchange trading volume in January 2024 to 0.009% in July 2025, which it described as a 96.8% decrease.

The exchange further addressed its exposure to four major Iranian cryptocurrency platforms. According to Binance, direct exposure fell from $4.19 million in January 2024 to $110,000 in January 2026, marking a reduction exceeding 97%.

Binance noted that public blockchain networks allow users to transfer digital assets to deposit addresses without advance approval from exchanges. Consequently, platforms must rely on transaction monitoring systems and post-receipt controls to manage compliance risks.

The company stated that two entities referenced in recent reporting were subject to structured internal investigations. It said that at the time of the transactions, the users involved were not listed on sanctions registries and did not trigger alerts from its surveillance systems. Binance added that it initiated its review in mid-2025 after receiving information from law enforcement authorities.

According to the exchange, the accounts in question were subsequently offboarded, and relevant data was shared with appropriate authorities. Binance said its compliance review identified indirect exposure through multi-hop transactions and took action to close the affected accounts.

At the same time, Teng reiterated confidence in the company’s controls, stating that Binance’s compliance framework “is effective, and it worked here.” Despite those assurances, the exchange continues to pursue corrections and a retraction of the published report.

By fLEXI tEAM