Binance sues The Wall Street Journal over Iran-linked transaction report

• Binance has filed a complaint against The Wall Street Journal over its February 23 report.
• The exchange claims that WSJ's report was "false and defamatory," resulting in reputational harm.
• Following the lawsuit, WSJ reported that the US Justice Department is investigating Iran's use of Binance to evade sanctions. 

Binance has filed a lawsuit against The Wall Street Journal over a February 23 report alleging the exchange was involved in cryptocurrency transactions linked to sanctioned Iranian entities.

Binance tags allegations of Iran-linked transactions as "false"

The complaint, filed on Wednesday, claims the article contained "false and defamatory" statements that caused reputational and business harm to the company.

"This type of reporting erodes trust in the broader industry and undermines the efforts of those who are committed to protecting users and advancing positive innovation," said Binance Global Head of Litigation Dugan Bliss.

The lawsuit stems from a Wall Street Journal investigation that alleged Binance dismissed employees who had raised concerns about more than $1 billion in crypto transactions linked to sanctioned Iranian actors.

According to the report, the transfers were part of a broader $1.7 billion flow from Chinese clients to digital wallets allegedly connected to groups supported by Iran, including Yemen's Houthi movement.

The article also claimed that the transactions were routed through a Hong Kong-based intermediary, Blessed Trust, between 2024 and 2025. It further alleged that an internal investigation into the transactions was halted and that investigators involved in the review were suspended or terminated in late 2025.

Binance denied the allegations, stating that employees were not dismissed for raising compliance concerns and that the internal investigation continued. The exchange said accounts linked to problematic activity were ultimately removed from the platform.

In its complaint, Binance argued that the report created misleading impressions about its compliance practices and triggered unnecessary scrutiny from government officials.

The exchange also said it maintains a large compliance operation, including a dedicated team focused on monitoring illicit activity and cooperating with law enforcement agencies.

The legal dispute comes as US authorities are reportedly examining crypto transactions linked to Iranian networks.

In a follow-up report published earlier on Wednesday, The Wall Street Journal said the US Department of Justice (DOJ) is investigating whether actors linked to Iran used Binance to bypass sanctions.

According to the report, investigators are reviewing financial flows that may have passed through the exchange and have contacted individuals familiar with the matter for interviews and evidence.

Binance said it has cooperated with law enforcement authorities and reiterated that it does not facilitate transactions with sanctioned entities. The company added that accounts linked to the reported activity were closed earlier this year.

The BNB token (formerly known as Binance Coin) is up 1.5% over the past 24 hours as of writing on Wednesday.