The U.S. Department of Justice is reportedly investigating whether Iranian networks used the crypto exchange Binance to evade U.S. sanctions and move funds linked to groups backed by Tehran.
According to a report published by The Wall Street Journal, investigators are examining whether transactions processed on Binance were used to route funds connected to Iran and affiliated networks, including Houthi movement militants in Yemen. The report cited company documents and people familiar with the matter.
The investigation is said to focus on whether individuals or entities linked to Iran used the exchange to bypass financial restrictions imposed by the United States. U.S. sanctions prohibit American entities and financial systems from facilitating transactions that benefit sanctioned governments, organizations, or individuals.
Authorities are reportedly reviewing blockchain transactions and internal records to determine whether funds tied to Iranian networks passed through Binance accounts.
Some of the activity under scrutiny allegedly involves large transfers that may have been routed through intermediary wallets before reaching final destinations associated with Iran-backed groups.
It remains unclear whether the investigation is targeting Binance itself or primarily focusing on users who may have exploited the platform to move funds in violation of sanctions.
The exchange has previously stated that it works with law enforcement agencies and employs compliance systems designed to detect suspicious transactions and prevent illicit financial activity.
The reported probe comes as global regulators and enforcement agencies increase scrutiny of cryptocurrency platforms amid concerns that digital assets could be used to circumvent international sanctions or facilitate illicit financing.
In recent years, U.S. authorities have expanded investigations into how blockchain networks and digital asset exchanges are used in geopolitical conflicts and sanctions enforcement.
The latest inquiry also highlights the growing role of blockchain analytics and transaction monitoring tools in tracking financial flows across crypto markets.
If confirmed, the investigation would represent another high-profile case involving sanctions enforcement and cryptocurrency infrastructure as regulators continue to adapt oversight frameworks to the rapidly evolving digital asset sector.
