Binance Faces Increased Scrutiny Over $1.7 Billion in Suspicious Account Transactions

In recent developments, leaked documents reveal that Binance facilitated $1.7 billion in transactions through 13 accounts identified as suspicious—this includes $144 million that moved after the company's $4.3 billion plea deal with U.S. authorities.

Key Takeaways

Binance permitted $1.7 billion to be transferred through 13 accounts recognized as suspicious.
Notable transactions included $144 million post the $4.3 billion settlement with U.S. authorities.
Accounts linked to suspicious activities included significant funds associated with terrorism finance.
Binance maintains that it has rigorous compliance controls against illicit conduct.
Concerns are growing regarding Binance’s governance and oversight following a presidential pardon for its founder.

Binance facing scrutiny over $1.7 billion in suspicious account transactions

Binance, a major cryptocurrency exchange, is under fresh scrutiny for allowing significant sums to flow through accounts flagged for suspicious activities, following a plea agreement with the U.S. Justice Department. The Financial Times examined internal files revealing that these transactions took place between 2021 and 2025, even after Binance’s settlement in 2023.

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According to a report by the Financial Times, despite entering a settlement with U.S. authorities, Binance let numerous millions flow through accounts recognized for questionable activities. This oversight was particularly highlighted after the exchange's $4.3 billion plea deal in November 2023.

The investigation revealed alarming details, such as an account affiliated with a resident from a Venezuelan slum that transferred nearly $93 million over four years. Some of the funds linked to this account traced back to a network accused by U.S. authorities of covert money transfers for Iran and the militant group Hizbollah.

Another concerning case involved a 25-year-old Venezuelan woman who received over $177 million in cryptocurrency over a two-year span. Alarmingly, she changed the bank details for her account 647 times within just 14 months, switching through nearly 500 distinct accounts in various countries, as reported by the Financial Times.

The publication examined data from 13 suspicious accounts that collectively conducted transactions totaling $1.7 billion, with around $144 million occurring after the 2023 settlement with U.S. authorities. Stefan Cassella, a former U.S. federal prosecutor, likened these activities to those of an unlicensed money-transmitting business.

Further investigation into the login behaviors of these accounts revealed anomalies that appeared physically impossible. One account tied to a Venezuelan bank employee showcased access from Caracas in the afternoon, followed by a login activity from Osaka, Japan the next morning, hinting at possible account compromises or coordinated misuse.

Several accounts were known to receive funds in Tether's stablecoin from wallets that had subsequently been frozen by Israeli authorities due to anti-terrorism legislation. Many of these transactions were traced back to wallets linked to Tawfiq Al-Law, a Syrian national accused of financial activities for Hizbollah and Iran-supported Houthi groups. In 2023, Israel froze assets related to these accounts, and the U.S. Treasury imposed sanctions on Al-Law in 2024.

In response to these findings, Binance informed the Financial Times that it upholds rigorous compliance measures and a stringent stance against illegal activities, including systems aimed at detecting and scrutinizing suspicious transactions.

This revelation comes during a period of intensified scrutiny regarding the governance of Binance, particularly after a presidential pardon granted to founder Changpeng Zhao in October for violations related to anti-money laundering. The pardon, along with heightened business connections between Zhao's family and Binance-linked entities, complicates oversight efforts, according to sources cited by the Financial Times. Notably, much of the reported activity occurred after independent monitors were appointed in 2024.