Binance is categorically denying allegations that its compliance investigators discovered more than $1 billion in Iran-linked Tether (USDT) transactions routed through the Tron (TRX) blockchain and were subsequently fired for raising concerns, with Co-CEO Richard Teng calling recent reporting "irresponsible and misleading."
What Happened: Binance Fights Back
The dispute centers on a Feb. 13 investigative report by Fortune, which claimed compliance investigators at Binance identified over $1 billion in USDT transactions tied to Iranian entities between Mar. 2024 and Aug. 2025. At least five members of the exchange's compliance investigations team were reportedly dismissed after flagging the activity internally.
Several of those affected were described as senior investigators with law enforcement backgrounds. Additional compliance personnel also departed in recent months, though reasons for their exits were not publicly confirmed.
In a public statement, Teng wrote: "The record must be clear. No sanctions violations were found, no investigators were fired for raising concerns, and Binance continues to meet its regulatory commitments." Binance also sent a formal letter to Fortune calling the article riddled with "gross material inaccuracies and misleading implications."
The company said a full internal review conducted with external legal counsel found no evidence of sanctions breaches tied to the referenced activity.
Binance stressed it operates under whistleblower protections across multiple jurisdictions and has "significantly strengthened" its sanctions screening infrastructure since its 2023 settlement with U.S. authorities.
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Why It Matters: Trust Under Scrutiny
The allegations carry particular weight because Binance agreed to a $4.3 billion settlement in 2023 over anti-money laundering and sanctions violations, and the exchange has operated under enhanced compliance obligations ever since.
Blockchain analytics firms including TRM Labs, Chainalysis, and Elliptic have previously documented growing use of USDT by Iranian-linked actors to move funds outside traditional banking channels.
U.S. authorities, including the Office of Foreign Assets Control (OFAC), have sanctioned other exchanges over similar Iran-linked activity involving USDT on Tron.
With no new enforcement action announced, the standoff remains a contest between anonymous-source allegations and categorical corporate denials — raising unresolved questions about how compliance, transparency, and investigative reporting intersect in an industry still working to rebuild credibility.
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