Cryptocurrency exchange Binance has filed a lawsuit against The Wall Street Journal, accusing the publication of defamation over a February report alleging the company halted an internal compliance investigation into crypto transactions connected to Iran-linked networks.
In a blog post released Wednesday, Binance said the legal complaint targets a Feb. 23 article that claimed the exchange dismantled an internal probe examining more than $1 billion in cryptocurrency flows tied to entities supporting Iranian militant groups.
The newspaper previously reported that investigators within Binance traced significant crypto transfers through a Hong Kong-based trading firm that allegedly moved hundreds of millions of dollars in stablecoins linked to Iranian networks.
According to the report, the investigators who uncovered the activity were later suspended or removed after presenting their findings.
Binance Denies Claims Of Halted Investigation
Binance has strongly rejected the allegations, stating that the company did not shut down the compliance investigation or dismiss investigators because of their findings.
"Binance categorically did not dismantle any compliance investigation," a Binance spokesperson said. "The WSJ continues to report the same falsities. As a result, we have filed a lawsuit against the Wall Street Journal for defamation."
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The exchange said the internal probe continued and ultimately revealed a complex network of financial transactions spanning multiple regions.
According to the company, investigators identified activity across jurisdictions in Asia and the Middle East, leading Binance to remove the relevant user accounts and report the findings to law enforcement authorities.
"The truth is that Binance’s investigation continued and uncovered a sophisticated, multi-jurisdictional pattern of financial activity spanning Asia, the Middle East, and beyond," the spokesperson said.
Dispute Escalates Amid Sanctions Scrutiny
The legal action represents the latest escalation in tensions between Binance and the newspaper over reporting related to Iranian-linked crypto activity.
When the February article was first published, Binance disputed the claims and argued the report misrepresented the company’s internal compliance procedures.
The dispute has intensified as The Wall Street Journal reported Wednesday that the U.S. Department of Justice is examining whether Iranian actors may have used Binance to bypass sanctions.
Binance said it was unaware of any such investigation but reiterated that it continues to cooperate with regulators and law enforcement agencies where necessary.
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