Key Insights :
- Richard Teng said the reported transactions occurred before sanctions were imposed.
- The WSJ investigation linked Babak Zanjani to alleged Iran-connected transfers.
- Compliance scrutiny around crypto exchanges continues to expand globally.
Binance has rejected new allegations from The Wall Street Journal linking the exchange to Iran-connected financial activity. The dispute follows claims that networks tied to Iranian financier Babak Zanjani moved nearly $850 million through the platform over two years.
Richard Teng responded publicly on May 22, 2026, and described the report as inaccurate. He said the exchange never allowed transactions involving sanctioned individuals while sanctions were active. Teng also stated that the company had already reviewed the matter internally before the publication released its report.
Report raises questions around Iran-linked activity
The Wall Street Journal claimed that accounts connected to Zanjani processed large crypto transfers through one trading account. There was some activity that continued to late 2025 despite internal compliance concerns, the report alleged.
The transfers could have been used for networks tied to Iranian military operations, the report said. The article also noted other entities like Zedcex and Zedxion that have been previously discussed in previous sanctions-related sanctions discussions concerning Iran.
The investigation added to earlier reports published in February 2026. Those reports alleged that more than $1 billion in suspicious flows passed through networks associated with Iranian-linked groups.Teng disputed those claims and maintained that the publication ignored important context shared during the reporting process.
Teng defends compliance controls
Teng said the transactions cited by the publication took place before sanctions were officially imposed on the individuals involved. He argued that this detail changes the legal interpretation of the activity.
He also said Binance proactively reviewed the accounts before the WSJ contacted the company. According to Teng, the exchange shared those findings directly with reporters.
- Teng said the platform blocks sanctioned users immediately after designation
- He stated that compliance reviews were completed before media outreach
- He added that the exchange continues cooperating with law enforcement agencies
The company described its compliance structure as a zero-tolerance framework against illicit activity. Teng also pointed to ongoing partnerships with US and international authorities involved in financial crime investigations.
Past settlement still shapes scrutiny
The latest dispute arrives as regulators continue monitoring crypto sanctions enforcement. The exchange remains under close attention following its 2023 settlement with the US Department of Justice.
That settlement included anti-money laundering and sanctions violations tied to activity between 2018 and 2022. US officials said the case involved failures that allowed transactions connected to sanctioned jurisdictions, including Iran.
As part of the agreement, the exchange paid more than $4.3 billion and accepted an independent compliance monitor. Since then, the company has repeatedly stated that it rebuilt parts of its compliance systems.
Recent statements from the company claimed sanctions-related exposure declined sharply between 2024 and 2025. The exchange also said more than 1,500 employees now work in compliance, investigations, and risk management roles.
Industry pressure continues to grow
The entire cryptocurrency industry remains under regulatory threat in the United States, Europe, and Asia. Authorities are paying more attention to sanctions screening, transaction monitoring, and cross-border financial transactions.
As digital asset companies grow and venture into payments, stablecoins, and institutional trading platforms, the debate has grown in importance. The regulators are increasingly pushing for standards that are more in line with traditional finance.
The Wall Street Journal report has also raised the debate over whether or not blockchain networks can enable scale sanctions evasion. Those who want to see tighter regulations say that exchanges need to increase their security measures as trading expands around the world.
Meanwhile, crypto companies are fighting to preserve the transparency and auditability of blockchain. Those in the industry say it’s more often possible to trace on-chain activity than traditional financial movements.
As the market starts focusing on reputation risks.
This public affair between the publication and the exchange might have a negative impact on the reputation of the whole community in the short term. Regulators are also closely observing the countermeasures they are taking to the latest allegations.
Credibility is one of the most important aspects of compliance for traders and developers in their long-term trust. The governance and monitoring requirements on digital asset platforms are increasingly being prioritised by institutional participants.
Further media attention is likely to be followed by further regulatory scrutiny. The interpretation of the claims may be decided by on-chain analysis, compliance records and legal findings in the end.
Conclusion
The feud between Binance and The Wall Street Journal has brought crypto compliance with sanctions to the forefront of regulatory focus. The exchange states that the activity took place prior to the sanctions, but the claims serve to remind the rest of the world’s crypto exchanges of the increasing pressure to improve monitoring and enforcement.
