Binance Says "Zero Tolerance" — DOJ Apparently Testing That Policy 🇮🇷

The Manhattan US Attorney's Office is investigating whether Binance knowingly permitted trading on its platform that ran afoul of US sanctions on Iran, Bloomberg reported Tuesday, adding new detail to a Justice Department probe first disclosed in March. Bloomberg, citing people familiar with the matter, said the Justice Department's Criminal Division in Washington is also participating in the investigation. The Attorney's Office for SDNY is leading the inquiry, according to the report.

A Binance spokesperson, asked for comment, told Cointelegraph: "We maintain a zero-tolerance policy for sanctions violations. We fully cooperate with law enforcement, and we remain committed to rooting out and shutting down bad actors." The statement did not directly address whether Binance is aware of the reported investigation, and the exchange did not immediately confirm or deny the probe's existence on the record. An investigation does not establish wrongdoing and may conclude without charges being filed.

The fresh reporting comes days after Binance co-CEO Richard Teng publicly distanced the exchange from a related civil forfeiture matter and reiterated the company's zero-tolerance stance on sanctions violations and illicit activity. The Wall Street Journal reported in March that the DOJ was examining whether Iran used Binance to evade US sanctions, citing company documents and people familiar with the matter. At the time, the Journal said it was unclear whether the DOJ was probing Binance itself, its users, or both, and Binance told Cointelegraph it was not aware of any DOJ investigation.

The US Treasury separately announced Operation Economic Outc, an enforcement initiative targeting Iranian sanctions evasion. A related effort, the US Senator's office has sought updates on the independent monitor appointed as part of Binance's 2023 settlement, citing ongoing scrutiny of the exchange's Iran-related compliance.

Federal prosecutors have not publicly announced charges or detailed the scope of the latest Binance inquiry, and whether any charges follow will depend on evidence gathered during the probe.