Key Insights:
- Binance denies enabling Iran-linked transactions and says its compliance systems actively block sanctioned users and monitor suspicious activity.
- Investigations into intermediaries led to the removal of Hexa Whale and Blessed Trust from the platform.
- Exposure to wallets linked to illicit activity declined from 0.284% to 0.009%, according to blockchain analytics data cited by the exchange.
Binance said it has invested significant resources in expanding compliance infrastructure and strengthening financial crime monitoring across its global operations.
According to the company, its compliance division now includes more than 1,500 professionals responsible for investigations, sanctions monitoring, and counterterrorism financing oversight.These specialists operate in multiple regions and monitor platform activity to detect suspicious behavior and possible regulatory violations.
The exchange also uses more than 25 advanced monitoring tools designed to analyze user activity, identify unusual transaction patterns, and screen accounts.Customer onboarding procedures require identity verification checks alongside sanctions screening intended to prevent restricted individuals from accessing the platform.
When internal monitoring systems flag unusual activity, compliance teams review transaction histories and determine whether additional investigation is required.Binance said those investigations may lead to further action including account restrictions, reporting to authorities, or removal from the exchange.
Cooperation with investigators and enforcement authorities
Binance emphasized its continued collaboration with international investigators, citing collaboration with regulators as the main aspect of its compliance policy.
The company records show that the exchange responded to over $71,000 requests by law enforcers in 2025 alone, including investigations in multiple jurisdictions.The most common types of such requests include delivery of transaction records, tracing wallets, and assisting in financial crime investigations by the authorities.
Binance claimed that its internal investigations have assisted regulators and law enforcement agencies to spot criminal networks that exist in cryptocurrency markets.In the last 3 years, the exchange has helped the authorities seize over $752 million, which was associated with illegal activities.
Executives stated that these efforts demonstrate how compliance programs can support enforcement actions while improving transparency within digital asset markets.The company also noted that collaboration with investigators helps identify vulnerabilities and strengthen monitoring processes across global trading platforms.
Investigations into Hexa whale and blessed trust
Binance also refuted reports that reported that there were thousands of Iranian-related accounts on the exchange with the use of location masking technologies.
Certain reports were claiming that internal researchers had detected over 1,500 accounts accessed in Iran, casting doubts on the enforcement of sanctions.Binance said it first became aware of the concerns after receiving requests from law enforcement authorities during investigations conducted in 2025.
The exchange launched internal reviews to analyze transaction histories connected to both entities and evaluate possible sanctions violations.Compliance staff examined records related to account activity and shared relevant information with investigators responsible for the inquiries.
According to the company, the review process did not identify any direct transactions between accounts on the exchange and Iranian entities.After completing those reviews, the exchange decided to remove the intermediaries from its platform as part of precautionary compliance measures.
Hexa Whale was offboarded in August 2025, while Blessed Trust accounts were removed in January 2026 following the internal investigations.
Reports about iranian accounts and transaction exposure
Binance also refuted reports that reported that there were thousands of Iranian-related accounts on the exchange with the use of location masking technologies.
Certain reports were claiming that internal researchers had detected over 1,500 accounts accessed in Iran, casting doubts on the enforcement of sanctions.The company rejected those claims, stating that it had never determined that thousands of Iranian-linked accounts existed on its platform.
Officials added that attempts to bypass geographic restrictions using VPN services violate platform policies and trigger enforcement actions.Accounts suspected of violating location rules may face investigation, suspension, or permanent removal depending on the findings of compliance teams.
The exchange also quoted blockchain analytics data that indicated decreasing exposure to wallets with an illicit activity throughout the platform.Between January 2024 and July 2025, the share of trading volume connected to suspicious wallets fell from 0.284% to just 0.009%.
The exchange has also reported that the exposure to four major Iranian crypto exchanges reduced 97.3% disgracing the results of $4.19 million to approximately $110,000.Binance claimed that such cuts are indicators of the enhanced monitoring work, increased onboarding controls, and compliance controls.
The company decided that it is still investigating plausible risks, deleting problematic accounts where needed, and working with the government in various parts of the world.
