Binance Founder’s Pardon and Subsequent Allegations of Facilitating Transactions with Iran

Shortly after Donald Trump pardoned Changpeng Zhao, the founder of Binance, in October 2025, reports emerged alleging the cryptocurrency exchange may have facilitated transactions for Iranian entities, potentially involving billions of dollars. The allegations surfaced through internal investigations within Binance, raising questions about the implications of the pardon and the company’s compliance with sanctions.

Internal Investigation Reveals Potential Iran Transactions

A group of internal Binance investigators reportedly discovered that individuals in Iran had access to over 1,500 accounts on the platform. These accounts allegedly facilitated the movement of $1.7 billion to Iranian-backed groups, including Yemen’s Houthi militants, throughout 2024 and 2025 . Investigators claim they reported these transactions to Binance executives but were subsequently disciplined. At least four employees were reportedly fired or suspended, with allegations citing “violations of company protocol” related to client data handling.

Binance Denies Sanctions Violations and Dismissal of Investigators

In a statement to the Guardian, a Binance spokesperson asserted that the company “did not violate sanctions laws in respect of the transactions described.” The spokesperson also denied that internal investigators were dismissed for raising compliance concerns, stating, “No investigator was dismissed for raising compliance concerns or for reporting potential sanctions issues.”

Background: Changpeng Zhao and the Binance Case

Changpeng Zhao founded Binance in 2017, and it quickly became the world’s largest cryptocurrency exchange. In 2023, Zhao pleaded guilty to money laundering charges and resigned from his position as CEO. He was sentenced to four months in prison and ordered to pay a $50 million fine, with a bar on any future involvement in the business.

Trump’s Pardon and Potential Conflicts of Interest

In October 2025, President Trump granted Zhao a pardon, downplaying the severity of his crimes. Trump stated, “They say what he did was not even a crime. It wasn’t a crime,” and claimed Zhao was “persecuted by the Biden administration.” This decision drew scrutiny due to the connections between Trump’s family crypto business, World Liberty Financial, and Binance. Zhao attended a conference at Mar-a-Lago earlier in the month.

Binance’s Legal Settlements and Commitments

Binance also pleaded guilty in 2023 and agreed to internal monitoring and a criminal fine of nearly $1.81 billion, along with a $2.51 billion order of forfeiture to settle three criminal charges. The company pledged to pursue and penalize individuals who used its platform for illicit financial transactions, including those originating from Iran.

Timing of Allegations and White House Response

The allegations regarding the Iranian transactions reportedly came to light within Binance before Trump’s pardon. The entities allegedly receiving funds include a chief foreign adversary that the Trump administration had reportedly been planning to strike. The White House did not immediately respond to a request for comment.

Binance and Trump Family Ties

Binance’s ties to World Liberty Financial, a crypto company founded by President Trump’s sons, Eric and Donald Jr., have also come under scrutiny. In March 2025, state-owned firm MGX of Abu Dhabi invested $2 billion into Binance using USD1, a stablecoin issued by World Liberty Financial. Changpeng Zhao stated that MGX chose to use USD1 for the investment and that his request was simply to be paid in cryptocurrency.