Binance allowed $144 million in suspicious cryptocurrency transactions through flagged accounts after its November 2023 plea agreement, according to a new investigation.
The FT report based on leaked internal files reveals 13 accounts collectively processed $1.7 billion in transactions from 2021 through 2025.
Some funds originated from networks later accused of transferring money for Iran and Hezbollah.
The findings raise questions about compliance implementation following Binance's $4.3 billion criminal settlement with U.S. authorities.
What Happened
One account registered to a Venezuelan slum resident moved $93 million through Binance between 2021 and 2025.
Part of those funds came from networks U.S. authorities later accused of covertly moving money for Iran and Lebanon's Hezbollah, according to the FT.
Another account belonging to a 25-year-old Venezuelan woman received over $177 million in cryptocurrency over two years.
The account changed linked bank details 647 times in 14 months, cycling through 496 unique accounts across the Americas.
All 13 accounts received a combined $29 million in Tether from wallets later frozen by Israel under anti-terrorism laws.
The wallets were linked to Tawfiq Al-Law, a Syrian money changer sanctioned by the U.S. Treasury in March 2024 for transferring funds for Hezbollah and Iran-backed Houthis.
One account showed access from Caracas at 3:56 p.m. on February 24, 2025, then from Osaka, Japan, at 1:30 a.m. the next day.
"That qualifies as suspicious," Stefan Cassella, a former federal prosecutor, told the FT.
"It looks like someone is acting as a money-transmitting business."
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Why It Matters
The revelations suggest gaps between Binance's settlement commitments and actual enforcement.
Binance pledged to strengthen transaction monitoring and sanctions controls as part of its November 2023 plea agreement.
The exchange agreed to implement real-time monitoring, enhanced due diligence, and regular reviews to prevent suspicious activities including terrorism financing.
U.S. federal prosecutors are reportedly reviewing Binance's request to terminate independent monitoring ahead of the three-year schedule.
Binance told the FT it "maintains strict compliance controls and a zero-tolerance approach to illicit activity."
The exchange cited "robust systems in place to flag and investigate suspicious transactions."
Former Binance CEO Changpeng Zhao received a presidential pardon in October following his four-month prison sentence for anti-money laundering violations.
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