Following a pardon granted by former President Donald Trump to Binance founder Changpeng Zhao last October, internal investigations at the cryptocurrency exchange reportedly uncovered evidence suggesting the platform may have facilitated the transfer of billions of dollars to Iranian entities. The findings, detailed in a report by the New York Times, raise questions about Binance’s compliance with international sanctions and the timing of the presidential pardon.
Investigators allegedly discovered that over 1,500 accounts on the Binance platform were linked to individuals in Iran. According to the Wall Street Journal, two of these accounts were reportedly used to move $1.7 billion to groups backed by Iran, including Yemen’s Houthi militants, throughout 2024 and 2025. This revelation comes as scrutiny intensifies over the intersection of cryptocurrency and national security.
The internal Binance team reportedly shared these findings with company executives, but faced repercussions for doing so. At least four employees were allegedly fired or suspended, accused of violating company protocol regarding client data handling. Binance, however, denies these claims. A spokesperson told The Guardian, “Binance did not violate sanctions laws in respect of the transactions described,” and stated, “No investigator was dismissed for raising compliance concerns or for reporting potential sanctions issues.”
Changpeng Zhao, who founded Binance in 2017 – it quickly becoming the world’s largest cryptocurrency exchange – pleaded guilty to money laundering in 2023 and resigned from his position. He was sentenced to four months in prison and ordered to pay a $50 million fine, with a bar on future involvement in the business. The pardon from President Trump, granted in October 2025, downplayed the severity of Zhao’s crimes. Trump stated, “They say what he did was not even a crime. It wasn’t a crime,” adding that Zhao had been “persecuted by the Biden administration” and the pardon was granted “at the request of a lot of highly decent people.”
Binance’s Legal Troubles and Financial Penalties
Binance’s legal issues extend beyond Zhao’s individual case. In 2023, the company itself pleaded guilty to criminal charges and agreed to pay a nearly $1.81 billion criminal fine, along with a $2.51 billion forfeiture order. As part of the agreement, Binance committed to enhanced internal monitoring and vowed to pursue individuals using the platform for illicit financial transactions, including those originating from Iran. The company’s pledge to combat illicit activity is now under renewed examination given the recent allegations.
The discovery of the Iranian transactions reportedly occurred before Trump issued the pardon. The New York Times reported that the entities receiving funds included a “chief foreign adversary” that the Trump administration had reportedly been considering military action against. This timing has fueled speculation about potential conflicts of interest, particularly given the Trump family’s involvement in the cryptocurrency space through World Liberty Financial, which has collaborated with Binance. Zhao himself attended a conference at Mar-a-Lago earlier this month.
The White House has not yet issued a comment on the reported findings.
Trump’s Claims and Concerns Over Conflict of Interest
President Trump’s assertion that he “doesn’t recognize” Changpeng Zhao, as stated in a November 2025 interview on CBS’s “60 Minutes” – despite Binance’s business dealings with his family’s crypto venture – has drawn criticism. White House Press Secretary Karoline Leavitt clarified that Trump meant he did not have a personal relationship with Zhao, but the statement has not quelled concerns about the pardon’s motivations. FactCheck.org noted that Trump claimed Zhao was a victim of a “witch hunt” by the Biden administration. FactCheck.org investigated these claims, highlighting Zhao’s guilty plea and the significant financial penalties imposed on Binance.
The pardon of Zhao reignited debate over the White House’s approach to cryptocurrency, particularly as the Trump family’s financial interests in the industry have grown. Since taking office, Trump has loosened regulations, proposed a national cryptocurrency reserve, and advocated for easier access to digital assets for retirement savings. The BBC reported on these developments, noting the deepening ties between the Trump administration and the cryptocurrency sector.
Binance founder Changpeng ‘CZ’ Zhao recently discussed his time in prison and President Trump’s pardon in an interview on CNBC’s ‘Squawk Box’ on January 23, 2026. You can watch the full interview here.
The revelations regarding potential funding of Iranian entities raise serious questions about Binance’s internal controls and its commitment to preventing illicit financial activity. The situation is likely to draw further scrutiny from regulators and lawmakers, potentially leading to additional investigations and stricter oversight of the cryptocurrency industry. The Department of Justice and other regulatory bodies will likely assess whether Binance adequately addressed sanctions violations and whether the pardon influenced the ongoing investigation.
As investigations continue, the focus will be on determining the extent of the alleged illicit transactions and whether Binance knowingly facilitated the flow of funds to sanctioned entities. The case underscores the challenges of regulating the rapidly evolving cryptocurrency landscape and the need for robust compliance measures to prevent its use for illegal purposes.
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