US Justice Department Probes Binance for Possible Settlement Violations

In 2023, Binance settled a US criminal case by agreeing to pay $4.3 billion. Now, less than three years on, federal prosecutors are examining if the crypto exchange violated the terms of that settlement.

On October 9, the head of the Justice Department's Criminal Division, Tysen Duva, confirmed to Bloomberg that authorities are reviewing Binance's compliance.

Three Issues Drawing Scrutiny

One issue relates to a suspected Iranian payment network. According to The Wall Street Journal, accounts linked to financier Babak Zanjani moved approximately $850 million via Binance.

The publication's recent probe details a VIP client whose questionable transactions attracted attention from US and Swiss authorities. Binance claims it shut those accounts.

In September, prosecutors filed a forfeiture case involving $61 million. They allege that Blessed Trust and Hexa Whale, two Chinese firms, used Binance accounts to launder money from Iranian oil sales.

The broader network reportedly shifted over $1.5 billion. Binance says it probed and removed both entities.

The third area involves how Binance handled suspected sanctions violations.

Earlier media reports indicated prosecutors were looking into whether the exchange knowingly permitted banned transactions. That larger probe intersects with the other two matters.

The DOJ has not specified which incidents, if any, are included in its settlement review. The forfeiture complaint does not allege any misconduct by Binance or its staff.

How Have Other Companies Fared After Breaching US Agreements?

• In 2023, Ericsson acknowledged violating a deferred-prosecution agreement. The telecom firm entered a guilty plea and paid an additional $206.7 million. Its compliance monitor's tenure was lengthened.
• Standard Chartered incurred additional penalties in 2019. The bank consented to over $1 billion in worldwide fines for historical Iran sanctions breaches, as well as an extended prosecution agreement.
• Finally, Boeing. In 2024, the DOJ determined that the planemaker had violated its agreement. However, Boeing subsequently obtained a fresh non-prosecution accord. Its criminal charge was dropped in 2025.

The comparison is not exact. Binance already pleaded guilty in 2023, while those cases concerned deferred-prosecution deals.

Likelihood of Further Significant Penalties?

Precedent suggests various potential outcomes, from stricter compliance monitoring to extra fines or new criminal actions.

A negotiated outcome seems more likely than an immediate step against Binance's business. If evidence demonstrates intentional sanctions violations or concealment, prosecutors would have a more solid basis for criminal charges.

There is no dependable statistical method to assign probability percentages based on these limited examples.

The key question is simple: What knowledge did Binance have regarding the suspicious activity, and how prompt was its response?