Binance Crypto Exchange Suspected of Acting as Secret Funding Channel for Iran's Military
Global crypto markets were rocked by fresh allegations after an internal Binance report alleged a covert payments network used to fund Iran’s military power. Amid escalating tensions between Iran and the United States, a leading Tehran financier is accused of building a digital financial infrastructure to sustain funding for the Islamic Revolutionary Guard Corps (IRGC).
The network is said to be controlled by Babak Zanjani, an Iranian entrepreneur who styles himself as an anti-sanctions operator. According to Binance’s internal compliance document, Zanjani’s network processed transactions totalling US$850 million over the past two years, with the majority routed through a single principal trading account.
Investigators found that Zanjani did not operate alone. His associates — including a sister, a romantic partner, and the director of his company — ran several additional accounts accessed from the same device. The pattern was flagged by Binance’s compliance team as tangible evidence of attempts to evade United States sanctions on Iran.
Although several internal warnings were raised, the main account reportedly remained active for at least 15 months and was still active as recently as January. The funds are alleged to be part of billions of dollars in crypto transfers funnelled to IRGC funding networks, which also support groups such as Hamas, Hizbollah and Houthi militants in Yemen.
In response, a Binance spokesperson said the information was inaccurate. The exchange claimed it does not permit transactions with individuals or wallets listed on sanctions lists. ‘Binance has zero tolerance for illicit activity and since 2024 has built a world-class compliance programme,’ the spokesperson said.
However, the US Department of Justice is investigating Binance’s use by Iran to evade sanctions, particularly after Binance admitted to anti-money-laundering violations in 2023 and paid a record US$4.3 billion fine. Binance founder Changpeng Zhao, who previously served a four-month prison sentence, was recently granted a presidential pardon by President Trump in October.
The flow of funds via Binance to entities connected to the IRGC largely relates to payments from Iranian oil buyers in China. This trade is a significant revenue source for Tehran, controlled directly by the IRGC to circumvent international financial blockades.
The US Treasury, through its Economic Fury operation, warned global financial institutions that they would face severe consequences if they facilitated transfers on Iran’s behalf. To date, US authorities are reported to have frozen crypto assets belonging to Iran worth US$344 million in an effort to cut the country’s financial logistics.
The Trump Administration had offered up to US$15 million for information about IRGC’s financial mechanisms to tighten economic sanctions.
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