Manhattan US Attorney Probes Binance over Iran Sanctions

The Manhattan US Attorney’s Office is investigating whether Binance knowingly allowed trading that violated US sanctions on Iran. Bloomberg reported this development on Tuesday, adding specific jurisdictional details to a probe first surfaced in March.

The Justice Department’s Criminal Division in Washington is also involved in the inquiry. This dual-track approach signals a coordinated federal effort to examine potential sanctions evasion through the platform.

Federal probe targets specific compliance failures

Prosecutors are examining whether the exchange knowingly enabled transactions that breached sanctions rules. The inquiry focuses on the company’s internal controls and their effectiveness in preventing prohibited activity.

An investigation does not establish wrongdoing or guarantee that charges will be filed. Legal proceedings may conclude without any criminal liability attached to the firm or its executives.

Binance affirms zero-tolerance policy for violations

A Binance spokesperson told Cointelegraph that the company maintains a zero-tolerance policy for sanctions violations. The statement emphasized full cooperation with law enforcement and a commitment to shutting down bad actors.

The company did not directly address whether it is aware of the reported investigation. This silence contrasts with the detailed reporting from Bloomberg and the earlier Wall Street Journal coverage.

Earlier reports highlighted uncertainty over scope

In March, the Wall Street Journal reported that the DOJ was examining whether Iran used Binance to evade sanctions. At that time, it was unclear if the probe targeted the exchange, its users, or both.

Binance told Cointelegraph in March that it was not aware of any DOJ investigation. The current reporting clarifies that the Manhattan US Attorney’s Office is now leading the effort.