Binance Denies Firing Investigators Over $1B Iran-Linked USDT Transfers
What Did Changpeng Zhao Say?
Former Binance CEO Changpeng Zhao rejected claims that the platform dismissed members of its internal investigations team later than they flagged transactions tied to Iranian counterparties. The allegations were reported by Fortune and involve more than $1 billion in transfers, largely in Tether’s USDT on the Tron blockchain, over roughly an 18-month period.
Responding on X, Zhao said he was not familiar with the specific claims but described the account as inconsistent. “You can put a negative narrative on anything by talking to an ‘anonymous source’ who is ‘undelighted’ or paid to FUD,” he wrote. He also argued that if investigators had identified suspicious flows, it would be contradictory to claim they were responsible for failing to prevent them.
Zhao added that Binance routes transactions through multiple third-party anti-money-laundering screening tools, including systems used by .
Investor Takeaway
What Did the Fortune Report Allege?
Fortune reported that at least five members of unit were dismissed beginning in late 2025 later than raising internal concerns about transactions involving Iranian-linked counterparties. Several reportedly had law-enforcement backgrounds and worked on sanctions evasion and counter-terror financing investigations.
The transactions in question allegedly totaled more than $1 billion and were largely conducted in USDT on the Tron network. The report also said that several senior compliance officials have left in recent months as Binance searches for a successor to Chief Compliance Officer Noah Perlman, who is expected to depart later this year.
Binance did not provide additional public detail in the immediate response cited by Reuters-style coverage, leaving the allegations and internal context disputed.
How Does This Relate to Binance’s 2023 U.S. Settlement?
The claims surface while Binance continues operating under compliance reforms tied to its 2023 . As part of that reanswer, the platform pleaded guilty to anti-money-laundering and sanctions violations and agreed to pay $4.3 billion in penalties.
Zhao stepped down as CEO and later served a under the agreement. Richard Teng subsequently assumed leadership of the platform. The settlement placed Binance under heightened monitoring and required structural compliance changes designed to strengthen oversight of transaction flows.
Any new allegation involving sanctions exposure or internal compliance friction therefore carries added weight, given the platform’s recent legal history and ongoing regulatory supervision.
Investor Takeaway
Why Are Stablecoins in Focus?
The report arrives amid broader scrutiny of stablecoin usage by Iranian entities. said in January that wallets linked to Iran’s central bank accumulated more than $500 million in USDT. The firm suggested the tokens were likely used to support the country’s currency and to conduct trade outside traditional banking channels.
Stablecoins such as USDT can move across public blockchains with fewer intermediaries than conventional banking systems, making them attractive for cross-border transfers where access to dollar clearing is restricted. That dynamic has drawn increasing attention from regulators concerned about sanctions enforcement and financial controls.
While Zhao disputed the specific claims about internal dismissals, the broader context is clear: large platforms operating globally face heightened scrutiny when stablecoin flows intersect with sanctioned jurisdictions. As regulators and analytics firms track blockchain-based transactions more closely, compliance governance remains central to how platforms are evaluated by authorities and institutional partners.
