Binance, 'Drawing the Line' on Iran Money Laundering Controversy..."We Are Not Accused"

▲ Binance, Cryptocurrency Regulation, Iran, Crude Oil/AI Generated Image

Binance has drawn the line, stating it has not been accused of any wrongdoing in the case involving the seizure of $61 million in funds from Iranian crude oil.

According to cryptocurrency media outlet BeInCrypto on September 15 (local time), Binance co-CEO Richard Teng stated that the lawsuit regarding the seizure of Iranian crude oil funds by the U.S. was not filed against Binance. The U.S. Attorney's Office for the Southern District of New York is seeking to seize approximately $61 million in cryptocurrency, believed to have originated from the black market sale of sanctioned Iranian crude oil. Binance was not named as a defendant, nor did the complaint allege any wrongdoing by the exchange.

The U.S. Department of Justice (DOJ) alleged that Chinese companies Blessed Trust and Hexa Whale used Binance trading accounts to launder proceeds from crude oil sales. Prosecutors stated that over $1.5 billion in Iranian crude oil funds moved through a group of wallets designated as 'Entity A'. The prosecution claims that some of these funds flowed to the Islamic Revolutionary Guard Corps (IRGC), which the U.S. has designated as a terrorist organization.

U.S. Federal Prosecutor Sean Buckley announced this forfeiture action. However, the contents of the civil forfeiture lawsuit are merely allegations by the prosecution and cannot be considered established facts until a court ruling is made. The case is being handled by the U.S. District Court for the Southern District of New York, which will decide whether to forfeit the funds.

Teng emphasized that Binance applies a zero-tolerance policy to sanctions violations and does not permit transactions by sanctioned individuals. He stated that Binance has cooperated with investigative authorities since the matter was first raised several months ago. He also reaffirmed that accounts identified with illicit financial risks would be frozen. Teng stated, "If you try to use our industry to evade the law, we will find you, freeze your accounts, and hand you over to the authorities."

This incident is intertwined with Binance's past history of violating U.S. sanctions laws. In 2023, Binance pleaded guilty to charges including violations of U.S. sanctions laws and paid a fine of $4.3 billion. Teng had previously refuted allegations of Iran-related money laundering raised in the U.S. Senate last March, calling them "false and defamatory claims."

[Article Key Summary]

-U.S. prosecutors are seeking to seize approximately $61 million in cryptocurrency, believed to have originated from the sale of sanctioned Iranian crude oil.

-The U.S. Department of Justice alleged that two Chinese companies used Binance accounts to launder related funds, but Binance was not named as a defendant.

-Richard Teng stated that Binance has cooperated with investigative authorities and freezes accounts identified with illicit financial risks.

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