Binance Refutes WSJ Claims Over $850M Iranian Sanction Flows

Binance hits back at WSJ reports alleging $850M in Iranian sanction-busting flows, citing a misunderstanding of blockchain infrastructure and tracing.

The cryptocurrency exchange has rejected the latest allegations, stating that the media outlet “does not understand how blockchain infrastructure and fund tracking function.”

According to a recent report by the WSJ, a network linked to Iranian businessman Babak Zanjani transferred approximately $850 million through Binance accounts. Zanjani is a prominent figure in Iranian sanction-evasion schemes, long accused by the U.S. of facilitating the transfer of oil revenues to entities associated with the Islamic Revolutionary Guard Corps (IRGC).

The publication claims that some of these transactions continued as late as May 2026, despite intensifying regulatory pressure on Binance and global sanction regimes.

Binance: WSJ Confuses Direct and Indirect Flows

Binance reacted sharply, labeling the claims misleading. The company argues that the WSJ fails to distinguish between direct interactions with the platform and “indirect exposure,” where funds pass through multiple intermediary wallets and decentralized addresses before potentially reaching a sanctioned entity.

The exchange released its own analysis, showing that within a broader blockchain sequence totaling $126.1 million—which originated from regulated institutions and stablecoin issuers in Singapore—only about $24.1 million eventually reached wallets linked to the IRGC.

Binance maintains that such multi-layered transactions are practically impossible to block at the starting point if the initial addresses are not officially sanctioned or flagged by regulators.

The company also highlighted that since CEO Richard Teng took the helm, it has built one of the crypto industry’s largest compliance structures with over 1,500 employees. Internal data suggests that sanction exposure has decreased by nearly 97% compared to 2024 levels.

An Escalating War Between Binance and the WSJ

This latest report marks another chapter in the growing conflict between Binance and The Wall Street Journal. The friction began earlier this year following reports of alleged Iranian flows exceeding $1 billion and internal company investigations.

In response to those publications, Binance filed a defamation lawsuit against the WSJ in New York. This move has opened the door to the legal discovery process, meaning the media outlet’s lawyers could demand access to internal emails, Slack communications, and compliance reports to verify the accuracy of their reporting.

Simultaneously, the U.S. Department of Justice (DOJ) has launched an active investigation into how Iranian networks utilized Binance’s crypto infrastructure. WSJ sources indicate that investigators are already questioning former employees and analyzing whether new control mechanisms have effectively closed these channels.

Geopolitics Returns to the Forefront of Crypto

The case illustrates how quickly crypto infrastructure is becoming a matter of geopolitics and national security. While Binance strives to position itself as a regulated global financial platform following its settlements with U.S. authorities, every new report of sanctioned flows risks renewing pressure on the firm.

For investors and regulators, the central question remains: can even the largest exchanges truly control complex, multi-layered transactions on public blockchains—or does the industry’s very architecture make full sanction enforcement nearly impossible?