Binance Dismisses Key Investigators Over Alleged Iran Sanctions Breaches

In 2023, the cryptocurrency platform Binance admitted guilt in breaching anti-money-laundering regulations, know-your-customer requirements, and sanctions restrictions. As part of the resolution, the firm was required to pay a staggering $4.3 billion penalty, marking one of the most substantial corporate fines ever imposed in the United States. Binance’s co-founder, Changpeng Zhao, also entered a guilty plea for not establishing adequate supervisory measures, resulting in a four-month prison sentence. Consequently, Zhao resigned from his position as chief executive officer, and Binance accepted the imposition of government-appointed overseers, committing to a period of enhanced regulatory adherence and maturity.

Despite these commitments, Binance seems to be falling short of its assurances. Insights from various sources and internal records examined by Fortune reveal that members of the company’s compliance division identified indications of entities connected to Iran processing over $1 billion via the platform between March 2024 and August 2025, activities that may contravene U.S. sanctions regulations. These exchanges were facilitated on Binance using the Tether stablecoin across the Tron blockchain network.

Following the submission of their internal reports highlighting these discoveries, no fewer than five investigators lost their jobs beginning in late 2025, as confirmed by sources who shared details with Fortune anonymously due to concerns over potential legal consequences. Among those dismissed, at least three possessed prior experience in law enforcement from European and Asian jurisdictions. A number of them occupied senior positions within Binance, overseeing specialized and international financial probes, which encompassed efforts to detect sanctions circumvention and combat terrorism financing.

The precise motivations behind their terminations remain unclear. Some of the ex-employees posted public announcements about departing Binance on LinkedIn without elaborating on the specifics of their exits. All of them refrained from providing comments when approached. In a statement issued after this article’s publication, Binance denied dismissing any investigators due to reports of possible sanctions infractions, asserting that an internal examination, guided by expert legal advice, uncovered no proof of Binance contravening relevant sanctions legislation related to the mentioned activities.

In addition to the investigators’ departures, at least four senior compliance personnel have either resigned or been removed from their roles in the last three months, based on source accounts and publicly accessible data.

Robert Appleton, a partner at the law firm Olshan Frome Wolosky with extensive experience leading Department of Justice cases involving sanctions and Iran-related matters, expressed astonishment to Fortune, noting, “It is quite surprising that such events unfolded during a period of mandated oversight involving Binance’s own internal investigators.”

These dismissals occurred amid several U.S. political shifts favorable to Binance, such as President Donald Trump’s dismantling of cryptocurrency regulatory frameworks and his October decision to issue a pardon to Zhao for the 2023 conviction. This clemency followed Zhao’s team’s engagement of Washington, D.C., lobbyists and Binance’s assistance in supporting the Trump family’s cryptocurrency venture, World Liberty Financial, with the rollout of its proprietary stablecoin.

Reports of these compliance team changes surface as Binance searches for a successor to Noah Perlman, a former U.S. prosecutor serving as chief compliance officer. Perlman joined Binance in 2023 as a prominent addition to the leadership. He remains employed there currently. An insider familiar with internal operations, speaking anonymously to Fortune about confidential company matters, indicated that Perlman intends to leave the organization later this year. According to this source, his departure bears no relation to the investigators’ firings.

A Binance spokesperson issued a statement emphasizing, “As standard policy, we refrain from discussing active investigations. Binance remains dedicated to full adherence to all pertinent sanctions laws and rules in the jurisdictions where it conducts business.” The representative further noted that the company avoids commentary on individual personnel situations and that staff violating internal policies face termination.

The statement added, “We maintain close collaboration with law enforcement agencies to safeguard our users and the broader cryptocurrency ecosystem. Our primary expertise and dedicated teams in these areas continue to operate effectively.”

A Shift in Compliance Strategy

Established in 2017, Binance rapidly ascended to dominate the global cryptocurrency exchange market. However, this explosive expansion triggered a wave of regulatory scrutiny and legal challenges. During a U.S. Department of Justice probe into its practices, Binance launched initiatives to overhaul its reputation, notably by recruiting top-tier compliance experts from international law enforcement agencies.

Upon announcing the settlement with Binance in November 2023, DOJ prosecutors highlighted that the exchange and its co-founder Zhao had favored financial gains over regulatory obligations, enabling billions in illicit transactions for users from sanctioned nations including Iran, Cuba, and Syria. Deputy Attorney General Lisa Monaco remarked that prioritizing profits above compliance does not lead to prosperity but rather to federal legal action.

Zhao stepped aside as CEO, and Binance described the agreement in a blog post as an opportunity to close a difficult but educational chapter and advance forward. Soon thereafter, the company elevated Richard Teng, who had served as a financial regulator in Singapore and the United Arab Emirates, to the CEO role. By November 2024, marking one year in that position, Binance revealed intentions to expand its full-time compliance workforce by 34%, targeting 645 employees by year’s end.

Even now, Binance continues to advertise more than a dozen open positions in compliance on its careers platform.