Binance Denies Firing Investigators Over $1.7B Iran Crypto Flows
Binance denied reports that it fired internal investigators after they uncovered $1.7 billion in cryptocurrency flows to Iranian entities, including wallets linked to the Islamic Revolutionary Guards Corps, as reported by The New York Times on February 24, 2026. The exchange stated no investigators were dismissed for raising compliance concerns, emphasizing its controls detected and reported suspicious activity, per CoinDesk. X posts from @CryptoInsights highlight Binance’s claim that the internal review found no violations of sanctions laws.
Internal Probe and Leadership Response
The probe, detailed by the Wall Street Journal, identified Hong Kong entities like Blessed Trust and Hexa Whale Trading moving funds to Iran-backed groups such as the Houthis, per. Investigators presented findings to CEO Richard Teng and Chief Compliance Officer Noah Perlman, but were allegedly suspended or fired for mishandling confidential data, according to Fortune. Binance operates under a 2023 U.S. settlement, paying $4.3 billion for AML and sanctions violations, with Changpeng Zhao pardoned in October 2025, The Block.
Market and Regulatory Implications
The reports led to a 2.78% drop in Bitcoin to $113,234 and Ethereum to $4,070, reflecting broader market concerns over sanctions evasion, per CoinMarketCap. Binance reduced exposure to Iranian exchanges by 97.3% from $4.19 million in January 2024 to $0.11 million in January 2026, per its X post. Regulatory risks, including potential SEC scrutiny under the Securities Exchange Act, loom, as seen in prior cases like Forsage ($340M losses), Coinlaw.io. Investors should monitor resistance at $120,000 for BTC, TradingView.
Future Outlook: Compliance and Industry Shifts
Binance’s denial and metrics suggest strengthened compliance, but ongoing U.S. oversight could impact operations. If substantiated, the allegations may lead to fines or restrictions, pressuring crypto exchanges to enhance AML measures. A positive resolution could boost confidence, potentially driving BTC to $150,000 by 2026, according to Techopedia. Risks include further outflows if trust erodes. Track ETF flows via SoSoValue and diversify into USDC. Follow credible sources like @TheBlock__ for updates.
