The Justice Department is scrutinizing Binance's compliance with its November 2023 settlement agreement, focusing on potential violations of U.S. sanctions against Iran, according to reports.
The original settlement resolved money laundering, unlicensed money transmitting, and sanctions violations. Binance founder Changpeng Zhao pleaded guilty to anti-money laundering failures and stepped down as CEO. The deal imposed a $4.3 billion penalty and required the exchange to install an independent monitor and overhaul its compliance program.
The renewed scrutiny signals the Justice Department's willingness to police settlement terms aggressively. Federal prosecutors will likely review internal audit reports and transaction data Binance provided under the 2023 agreement. The department has not announced a timeline for its findings.
If the Justice Department finds additional violations, Binance faces new fines, stricter operational restrictions, or renewed legal action against executives involved in facilitating illicit transactions. The investigation also serves as a warning to other crypto exchanges about the cost of non-compliance with U.S. sanctions and anti-money laundering rules.
