Binance Battles the Press Over a False $1. 7 Billion Claim
Binance has taken legal action against the Wall Street Journal after a February article claimed that $1.7 billion had moved to Iran‑backed terror groups through the crypto exchange. The company says the piece was untrue and that it sparked a U.S. Department of Justice probe, which Binance argues began because of the false story.
The lawsuit was filed last week as Binance seeks to protect its name and stop misinformation from spreading. Dugan Bliss, the firm’s Global Head of Litigation, said the move was essential to hold the newspaper accountable for what Binance sees as click‑bait journalism that harmed its reputation and business.
The timing of the complaint is striking. The Wall Street Journal released a new story on Wednesday claiming that the Justice Department is looking into Iran’s use of Binance to dodge sanctions. Binance says this investigation was triggered by the earlier February report.
Binance is a large operation, employing over 1,500 people worldwide. About one‑quarter of those staff focus on compliance, investigations and risk management, including experts in sanctions enforcement, anti‑terrorist financing and financial crime.
The company points to impressive reductions in sanctions risk. It says exposure related to sanctioned entities fell 96.8 % of total trade volume between January 2024 and July 2025, dropping from 0.284 % to just 0.009 %. Direct dealings with four major Iranian crypto exchanges fell 97.3 %, from $4.19 million in January 2024 to only $110,000 a year later.
In 2025 Binance handled more than 71,000 law‑enforcement requests worldwide and helped freeze or recover hundreds of millions of dollars linked to illicit activity. The firm acknowledges that blockchain technology cannot eliminate all risk, as anyone can send funds to an exchange address without prior approval.
The Wall Street Journal’s claim centers on a $1.7 billion transfer that Binance says was largely exaggerated. The exchange contends that after an internal audit, only $24 million actually moved into wallets tied to the Islamic Revolutionary Guard Corps. Binance also argues that users did not deal directly with sanctioned parties, but routed money through several intermediaries.
Beyond the DOJ probe, Senator Richard Blumenthal opened a Senate inquiry last month into Binance’s handling of Iranian transactions. A Treasury‑appointed monitor also asked for details about the same deals. Blumenthal described Binance’s answers as evasive and said they did little to allay his concerns.
The dispute highlights how a single inaccurate article can trigger government investigations and damage the reputation of even the biggest crypto exchanges. Binance’s lawsuit is its attempt to correct the record and stop what it sees as unfair reporting.
