US Prosecutors Investigate Binance Over Alleged Iran Sanctions Violations
US federal prosecutors are investigating cryptocurrency exchange Binance for allegedly violating sanctions against Iran by allowing Iranian trading on its platform.
US federal prosecutors have launched an investigation into cryptocurrency exchange Binance over suspected violations of American sanctions against Iran. According to a Bloomberg report that has caused a stir in the markets, the company failed to block Iranian trading on its platform.
The US Department of Justice is examining whether Binance allowed traders in Iran to conduct financial transactions through its platform, thereby bypassing economic sanctions imposed on Tehran. According to sources cited by Bloomberg, the probe focuses on the company's alleged failure to block specific transactions by Iranian entities. Reuters noted that it has not yet been able to independently verify the report.
The current investigation adds to a series of legal confrontations between the crypto platform and US authorities. In 2019, the United States restricted the company's operations for regulatory reasons, a step that led to the establishment of Binance US as a separate entity designed to comply with local law.
Despite this, documents revealed by Forbes magazine in 2020 allegedly indicated that the company established a sophisticated corporate structure designed to evade oversight and rake in profits from US investors without reporting.
