- Over $1.7 billion in crypto moved from Binance-linked wallets to U.S.-sanctioned groups like Iran‘s IRGC.
- A “Chinese Nexus” of VIP accounts and firms funneled funds, with two users accessing Binance from the same device.
- Binance stated the transfers did not trigger alerts as the wallets were not globally sanctioned at the time.
- The exchange previously settled with U.S. authorities for $4.3 billion over compliance failures.
Internal documents reveal more than $1.7 billion flowed through Binance-connected wallets to accounts tied to U.S.-designated terrorist entities, Gold-smuggler/”>according to Fortune. The funds reportedly reached groups including Iran’s Islamic Revolutionary Guard Corps and the Houthis.
Investigators identified a network they called the “Chinese Nexus” behind the massive flows. This network involved two Binance VIP users, one a 79-year-old man who indirectly sent over $439 million.
The second VIP was a 38-year-old Chinese woman who transferred $200 million. Both accounts reportedly accessed the Binance exchange from an identical device.
They received funds from Blessed Trust, a Hong Kong firm that helps convert crypto to fiat. A trading firm called Hexa Whale Trading Limited also sent around $500 million through this channel.
Consequently, $1.1 billion of the total moved via the USDC stablecoin issued by Circle Internet. The stablecoin issuer terminated Blessed Trust as a customer in 2025.
Binance stated none of the wallets involved were sanctioned by global law enforcement when the transactions occurred. Therefore, the transfers did not trigger compliance alerts on their platform.
This report emerges after Binance faced major regulatory action in 2023. The exchange paid a $4.3 billion U.S. settlement for anti-money laundering and sanctions failures.
As part of that settlement, cofounder Changpeng Zhao resigned and served a prison sentence. Meanwhile, the exchange’s native token BNB gained 2.8% amidst a broader market rally.
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