US Treasury Demands Binance Compliance Amid Iran Flow Scrutiny

The U.S. Treasury Department has privately escalated its demands on Binance, insisting the crypto exchange fully comply with the monitoring program established after its 2023 guilty plea. This renewed pressure, reported by The Information, follows allegations of over $1 billion in transactions flowing through Binance to Iran-linked wallets, a development that saw Binance's native token, BNB, drop to $641 – a 53% decline from its October 2025 peak of $1,370.

Treasury Under Secretary Gene Lange recently sent a letter to Binance, reminding the exchange of its obligation to share "critical data records and documents in a timely manner." This directive marks a notable shift from the more lenient stance regulators had reportedly adopted towards the world’s largest exchange in recent months. The catalyst appears to be internal compliance records, first surfaced by Fortune in February, suggesting significant funds moved to Iran-linked entities between March 2024 and August 2025.

Binance has disputed these reports, denying claims it fired internal investigators who raised concerns about Iranian flows. CEO Richard Teng stated no sanctions violations were found. The exchange’s 2023 guilty plea involved $4.3 billion in penalties for sanctions and anti-money laundering violations, alongside the appointment of independent monitors reporting to the Justice Department and FinCEN. Founder Changpeng Zhao, who served four months in prison, had reportedly been in talks to end the monitoring early.

This renewed scrutiny aligns with "Operation Economic Fury," a U.S. initiative launched in April to disrupt Iran’s financial networks. Treasury has already sanctioned crypto wallets tied to the Islamic Revolutionary Guard Corps and Iran’s central bank, coordinating with Tether to freeze approximately $344 million in USDT on the Tron network. Chainalysis estimates Iran generated around $7.78 billion in crypto activity during 2025, with IRGC-linked wallets receiving over $3 billion.

A Binance spokesperson affirmed the company’s commitment to cooperating with the independent monitor and "welcomes constructive feedback from the Treasury." For traders, the immediate watch item remains the exchange's demonstrable compliance with these heightened demands. Any further reports of non-cooperation or new allegations could trigger additional regulatory action, potentially impacting BNB's price stability and broader market sentiment towards centralized exchanges.