Binance reports a dramatic 97% reduction in exposure to sanctioned entities since early 2024, following allegations of compliance failures and internal disputes. The exchange refutes recent claims, asserting its anti-money laundering program is best-in-class and has sharply limited direct dealings with Iranian-linked exchanges while processing thousands of law enforcement requests.
Binance has announced a significant drop in its exposure to sanctioned entities, stating there has been a 97% decline since January 2024. The exchange emphasized its compliance program is continuously strengthening.
This follows a report claiming several investigators were fired after flagging over $1 billion in Iranian-linked transactions involving Tether’s USDT. Separate analytics from Elliptic noted wallets tied to Iran’s central bank accumulated over $500 million in USDT.
Binance shared data showing sanctions-related exposure fell from 0.284% to 0.009% of total volume over an 18-month period. The exchange’s direct connection to major Iranian crypto exchanges also dropped by 97.3%, a reduction it says outperforms ten global peers.
These developments occur as the exchange operates under compliance reforms from its U.S. settlement, where it pleaded guilty and paid $4.3 billion in penalties. The company has processed over 71,000 law enforcement requests and supported more than $131 million in confiscations in 2025 alone.
The exchange denied allegations it dismissed staff for raising compliance concerns. Binance stated an internal review confirmed the referenced entities were not on sanctions lists when using its platform and their transactions did not trigger standard monitoring alerts.
It clarified that some employees left after breaching internal data protection rules. Former CEO Changpeng Zhao dismissed the claims on social media, stating, “You can put a negative narrative on anything by talking to an ‘anonymous source’ who is ‘unhappy’ or paid to FUD.”
