Binance Claims It Cut Sanctioned Exposure by 97% Amid Iran-Linked Billion-Dollar Fund Flow Allegations

Core Insights - Binance claims to have reduced its exposure to sanctioned entities by nearly 97% since early 2024, amidst controversy regarding alleged Iran-linked fund flows exceeding $1 billion in Tether transactions [1][7] Compliance Measures - On February 23, Binance published a blog post asserting it has the most rigorous compliance measures in the industry, outperforming its top-10 global peers in managing sanctions-related risks [2] - The exchange reported a decrease in exposure to sanctioned entities from 0.284% of total trading volume in January 2024 to 0.009% by July 2025 [2] Interaction with Iranian Exchanges - Direct interactions with four main Iranian crypto exchanges reportedly fell from $4.19 million in January 2024 to $110,000 by January 2026 [3] Workforce and Investment in Compliance - Approximately 25% of Binance's global workforce, over 1,500 employees and contractors, is dedicated to compliance efforts [3] - The company claims to spend hundreds of millions of dollars on advanced screening technologies, monitoring systems, and training programs [3] Independent Compliance Investigations - Compliance investigations at Binance are conducted independently, free from interference by shareholders or executive leadership, with decisions based on law and established procedures [4] Law Enforcement Collaboration - In 2025, Binance responded to over 71,000 law enforcement inquiries globally, aiding in the recovery of over $131 million in illicit cash and conducting over 160 training sessions for regulators and law enforcement [5] Founder’s Statement - Founder Changpeng Zhao (CZ) emphasized the strength of Binance's compliance program, asserting it remains among the best in the industry [6]