Binance CEO Richard Teng demanded a full retraction from The Wall Street Journal on Tuesday, calling the paper's investigation into its sanctions compliance "defamatory."
The WSJ report alleged the exchange processed approximately $1.7 billion in cryptocurrency transactions linked to sanctioned Iranian entities - and that internal investigators who flagged the activity were later dismissed.
Teng's legal letter, sent by law firm Withers Bergman LLP to WSJ Editor-in-Chief Emma Tucker, claims the article contained false and misleading information.
The WSJ has not publicly responded.
What the Reports Allege
The WSJ investigation, headlined "Binance Fired Staff Who Flagged $1 Billion Moving to Sanctioned Iran Entities," reported that Binance's internal investigators identified over 1,500 accounts accessed from Iran, with funds flowing through intermediaries including Hong Kong-based Blessed Trust and Hexa Whale Trading.
The New York Times separately reported that at least four investigators were suspended or fired. Law enforcement sources cited in the WSJ described the activity as part of a shadow banking corridor linked to Iran's Revolutionary Guard Corps, designated by the U.S. as a terrorist organization.
According to both publications, the probe was dismantled in late 2025 - weeks after founder Changpeng Zhao received a presidential pardon.
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Binance's Response
Binance said the dismissed employees were terminated for unauthorized disclosure of confidential customer data, not for raising compliance concerns.
The exchange published internal data showing sanctions-related exposure fell 96.8% between January 2024 and July 2025, and that direct exposure to the four largest Iranian cryptocurrency exchanges dropped from $4.19 million to $110,000 over the same period.
Binance said it began investigating the two entities referenced in the reports in mid-2025 after receiving information from law enforcement, subsequently offboarding the accounts and notifying authorities.
Regulatory Stakes
The allegations carry significant weight given Binance's existing legal obligations.
In 2023, the exchange admitted to anti-money-laundering and sanctions violations, agreed to $4.3 billion in penalties, and remains under a three-year DOJ and FinCEN monitorship.
A former DOJ sanctions lead described the alleged probe dismantlement as "rather shocking" given that monitorship.
Binance has not confirmed whether compliance monitors have been briefed on the matter.
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