Binance CEO Denounces $1B Iran Sanctions Allegations as ‘Paid FUD’
Binance is once again in the spotlight, facing serious allegations related to compliance failures that echo prior controversies. The exchange is accused of facilitating $1 billion in transactions linked to sanctioned entities in Iran, raising significant concerns about its operational integrity.
Binance Responds to $1 Billion Iran Sanctions Allegations
Changpeng Zhao, commonly known as CZ, who is the CEO of Binance, dismissed these allegations as ‘paid FUD,’ a term he used to describe misinformation propagated by disgruntled ex-employees. The current CEO, Richard Teng, has labeled the report as ‘irresponsible’ while emphasizing the ongoing challenge of compliance efforts within the ever-evolving cryptocurrency landscape.
“As bad actors become more sophisticated, our vigilance must increase,” Teng stated. “We are dedicated to preventing illicit activities and maintaining global integrity.”
Compliance Challenges and Historical Context
In 2023, Binance reached a plea agreement with the Department of Justice (DoJ). This arrangement permits independent compliance monitoring for a period of up to three years, concluding in 2027. Despite these measures, the allegations regarding the $1 billion in Iranian transactions suggest that some activities may have escaped detection.
Iran’s Cryptocurrency Surge and U.S. Scrutiny
According to TRM Labs, a blockchain security firm, Iran’s cryptocurrency transactions exceeded $10 billion in 2025, with about half associated with the Islamic Revolutionary Guard Corps (IRGC). These figures prompted increased scrutiny from U.S. authorities, especially concerning sanction evasion tactics employed by Iranian entities.
- Total crypto transactions in Iran (2025): Over $10 billion
- Percentage linked to IRGC: 50%
- Binance compliance monitoring timeframe: Until 2027
Impact on Binance and Market Reactions
Despite the turbulence surrounding these allegations, Binance has not experienced significant panic among its users. While some withdrawals were observed due to market volatility, Bitcoin (BTC) reserves have risen from 651,000 to 666,000 BTC, indicating sustained investor confidence. Binance’s native token, BNB, showcased relative stability but faced challenges in maintaining a value above $600 amidst broader market weaknesses.
Conclusion
The allegations against Binance surrounding $1 billion linked to Iran could have severe implications for the exchange. As the situation develops, it remains to be seen how U.S. authorities, particularly the DoJ and the Treasury, will respond to the compliance issues raised.
