The United States Department of Justice has once again set its sights on Binance. US federal prosecutors are reportedly launching a new investigation to determine whether the crypto exchange deliberately permitted trades that violated US sanctions against Iran.
The US Attorney’s Office for the Southern District of New York, based in Manhattan, is leading the inquiry. They are partnering with the Justice Department’s (DOJ) Criminal Division in Washington to trace the transactions in question.
Focus on Internal Compliance Systems
The latest inquiry centers on evaluating Binance’s compliance control systems. Federal prosecutors are reviewing the company’s internal procedures for blocking fund flows from sanctioned nations. The key question is the extent to which exchange management was aware of the Iran-related transactions now under scrutiny.
News of the fresh probe emerges nearly three years after Binance agreed to a $4.3 billion federal settlement in late 2023. That prior penalty agreement required Binance to comply with US oversight mandates, and prosecutors’ latest move directly tests whether their compliance commitments are truly holding up in the case of Iran.
Claims of Strict KYC Rules
Responding to continued scrutiny from US law enforcement, Binance issued an official statement. The exchange emphasized that management maintains a zero-tolerance policy toward any international sanctions violations on its platform.
The exchange stated that its Know Your Customer (KYC) verification operates without loopholes. Through strict identity verification, the company claimed it completely prohibits users from Iran from accessing its services. This series of legal developments underscores that paying a multibillion-dollar fine in late 2023 did not stop US authorities from continuing to scrutinize crypto platform transaction histories.
Reported by crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
