Binance Faces Scrutiny Over Compliance Issues
Binance, the cryptocurrency exchange giant, is navigating turbulent waters as it faces renewed scrutiny over the dismissal of several compliance investigators linked to significant Iran-related transactions. Recent developments highlight internal shifts within the exchange’s compliance framework and remarks from its former CEO, Changpeng Zhao.
Internal Compliance Investigations
According to a report from Fortune, investigators within Binance’s compliance division uncovered over $1 billion in transactions associated with Iranian entities between March 2024 and August 2025. These transactions primarily utilized the stablecoin Tether on the Tron blockchain. Following their findings, which were detailed in internal reports, the company terminated at least five key investigators from late 2025 onward. Notably, those dismissed included individuals with reputable law enforcement experience in Europe and Asia, many of whom held senior positions concerning financial crime and sanctions compliance. The rationale behind their terminations has not been officially disclosed.
Fortune’s report also mentioned that four additional senior compliance officials had recently exited or were forced out of the firm, exacerbating concerns within Binance’s compliance operations. A spokesperson for the exchange stated that it’s against company policy to discuss ongoing investigations or personnel matters, but reiterated Binance’s commitment to adhering to all relevant sanctions laws. Further, they underscored that any staff members found violating company policies could face dismissal.
Government Oversight and Leadership Changes
These events transpired while Binance remains under a government-imposed supervision following its settlement with U.S. authorities in 2023, which resulted in hefty penalties of $4.3 billion related to anti-money laundering and sanctions violations. Zhao himself pleaded guilty to inadequacy in oversight during this time, serving a four-month sentence before stepping down as CEO. Richard Teng has since taken over the reins.
Zhao’s Public Response
In a public response to the ongoing situation, Zhao, who still retains a significant stake in Binance with approximately 94 million BNB tokens (about 64% of the available supply), expressed skepticism about the narrative crafted by anonymous sources. He mentioned,
“I don’t run Binance anymore, but as an ex-CEO, I know they run EVERY transaction through multiple third-party AML tools… If violations occurred, these systems would have likely picked them up.”
Compliance Initiatives and External Pressures
The ongoing compliance shake-up coincides with the exchange’s recent initiatives to bolster its regulatory framework; in November 2024, Binance announced a 34% increase in compliance personnel to expand its team to 645 members, demonstrating its commitment to improving oversight. As it stands, Binance is in search of a new Chief Compliance Officer, as the current one, Noah Perlman, is expected to transition out later this year, although his exit is not alleged to be linked to the current firings.
These internal challenges are compounded by external pressures as political developments in the United States unfold, including President Donald Trump granting Zhao a pardon in October 2025 for a prior conviction. Additionally, Binance has been actively engaging with lobbyists in Washington to support various cryptocurrency initiatives.
Security Concerns for Binance Officials
In an unrelated event that illustrates the exchange’s tumultuous environment, Binance France’s head, David Princay, was reportedly the target of a home invasion attempt on February 12, where masked individuals sought him out but left empty-handed. Law enforcement has apprehended suspects following surveillance footage analysis, but the incident raised alarm regarding the safety of Binance officials. Yi He, Binance’s co-founder, confirmed that Princay and his family are safe and emphasized the company’s cooperation with authorities regarding the investigation.
Conclusion
As it stands, Binance’s deepening compliance issues and external pressures may significantly impact its operations and reputation in the coming months.
