US DOJ probing Iran's use of Binance to evade war sanctions — $1.7B to proxy wallets

The US Justice Department is investigating Iran's use of the cryptocurrency exchange Binance to avoid sanctions, the Wall Street Journal reported citing documents and people familiar with the matter. The probe is looking into whether Binance as a platform is under investigation or whether the focus is on specific Binance users. Last November, more than $1.7 billion was flagged moving from Chinese clients into digital wallets used by Iran to finance its proxies, including Yemen's Houthi terror group. The Journal reported that Binance dismantled its own internal team that was investigating that cashflow. The investigation adds a financial intelligence dimension to the Iran war — the US is simultaneously conducting kinetic strikes while moving to choke Iran's crypto-based sanctions evasion infrastructure. The Binance probe connects to broader US efforts to defund Iran's proxy network: Houthi operations, PMF salaries, and Hezbollah weapons procurement have all reportedly relied on cryptocurrency channels to evade SWIFT-based sanctions. The $1.7B figure through Chinese intermediaries also highlights the China-Iran financial conduit that has allowed Iran to circumvent Western sanctions throughout the conflict. Binance founder Changpeng Zhao pleaded guilty to money-laundering and sanctions violations in 2023 and was subsequently pardoned by President Trump.