Crypto World
Binance Sues WSJ for Defamation as DOJ Opens Iran Sanctions Probe
The exchange’s lawsuit was filed the same morning the Journal reported a new federal investigation into whether Iran used Binance to evade U.S. sanctions.
Binance, the world’s largest crypto exchange, has filed a lawsuit against Dow Jones, publisher of The Wall Street Journal, over a February 23 article that the company calls “false and defamatory.”
The filing comes as the Journal further reported today that the U.S. Department of Justice is investigating whether Iranian networks used the exchange to move funds in violation of American sanctions.
“We view this lawsuit as a necessary step to defend ourselves against misinformation, hold The Wall Street Journal accountable for prioritizing clicks over journalistic integrity, and address the significant reputational harm and business consequences that have resulted,” said Dugan Bliss, Binance’s Global Head of Litigation, in a company blog post.
The February article alleged that Binance dismantled an internal compliance investigation after its own investigators flagged $1.7 billion in crypto flows linked to entities connected to Iran-backed militant groups. The report also claimed that investigators who raised concerns were later suspended or fired.
Meanwhile, Fortune and The New York Times also cited anonymous sources and internal documents in reports claiming that Binance ignored internal warnings that sanctioned entities were using the platform to launder nearly $2 billion.
The reports triggered political fallout. U.S. Senator Richard Blumenthal opened an inquiry into Binance’s sanctions compliance, writing that “Binance appears to have ignored clear warning signs, knowingly allowed illicit accounts to operate, and even provided hands-on support to entities engaged in money laundering.”
Binance flatly denies the allegations and says it did not fire employees for raising compliance concerns. Binance also claims the $1.7 billion in flagged funds “did not originate at Binance and did not end at Binance,” passing through multiple independent intermediaries.
In 2023, Binance pleaded guilty to violating U.S. anti-money laundering and sanctions laws and agreed to pay $4.3 billion in penalties. Founder Changpeng “CZ” Zhao also pleaded guilty and served four months in prison before receiving a presidential pardon in October 2025.
Binance previously sued Forbes over similar allegations in 2020 but dropped that case several months later.