In a significant turn of events, the cryptocurrency exchange Binance, which previously agreed to a historic settlement for multiple legal violations, appears to be facing ongoing challenges regarding its compliance practices. Following a 2023 settlement that involved a guilty plea to anti-money laundering and sanctions violations, Binance accepted a staggering $4.3 billion fine, marking one of the largest corporate fines in U.S. history. Additionally, Binance founder Changpeng Zhao entered a guilty plea for inadequate oversight and was subsequently sentenced to four months in prison. As part of the settlement, Zhao resigned as CEO, and the company committed to enhanced regulatory oversight under government-imposed monitorships.
However, recent reports suggest that Binance may not be adhering to its commitments. According to sources and internal documents reviewed by Fortune, compliance team investigators found evidence indicating that entities linked to Iran transacted over $1 billion via the exchange between March 2024 and August 2025, possibly breaching U.S. sanctions laws. These transactions, conducted using the stablecoin Tether on the Tron blockchain, raised alarms within the company’s compliance team.
Following the discovery, at least five compliance investigators were reportedly terminated starting in late 2025. Sources indicate that several of these individuals had extensive law enforcement backgrounds and were responsible for overseeing critical investigations related to sanctions and counter-terrorism financing. Their dismissals drew attention, especially as they occurred amidst ongoing scrutiny of Binance’s compliance practices. The exact reasons behind their firings remain unclear. Some former staff members announced their exits on LinkedIn without detailing the circumstances, and several declined to comment further.
In addition to the firings within the compliance team, it has also been reported that at least four senior compliance officials have either resigned or been ousted in the past three months. Robert Appleton, a partner at the law firm Olshan Frome Wolosky LLP, expressed shock at the developments occurring under the watch of a compliance monitorship, particularly given the exchange’s previous promises to enhance governance.
The timing of these events coincides with a shift in the political landscape in the U.S., notably following former President Donald Trump’s easing of crypto regulations and a pardon granted to Zhao for his prior guilty plea. The pardon followed Zhao’s hiring of lobbyists and Binance’s involvement in supporting Trump family initiatives in the crypto sector, further complicating the narrative around the exchange’s compliance and regulatory strategies.
Amidst the upheaval, Binance continues to search for a replacement for its former chief compliance officer, Noah Perlman, who is expected to transition out of the company later this year. According to internal sources, Perlman’s departure is unrelated to the recent firings of compliance staff.
A Binance spokesperson responded to the ongoing situation, emphasizing the company’s commitment to regulatory compliance and stating that specific personnel cases could not be disclosed due to ongoing investigations. The spokesperson also reaffirmed Binance’s dedication to working with law enforcement while maintaining its core compliance team.
Founded in 2017, Binance quickly emerged as a dominant force in the cryptocurrency market, but its rapid expansion has been marred by increasing scrutiny and regulatory challenges. Following the DOJ’s 2023 settlement announcement, prosecutors underscored that Binance had favored profit over regulatory compliance, enabling substantial illegal transactions with high-risk nations.
Following Zhao’s departure as CEO, Richard Teng, formerly a financial regulator, took on the role. Binance has made public commitments to enhance its compliance workforce, projecting a significant increase in full-time compliance staff. The company continues to seek candidates for compliance roles, indicating an ongoing effort to address previous criticisms and regulatory concerns despite recent setbacks.
