Former Binance CEO Changpeng Zhao pushed back Friday against claims the crypto exchange dismissed internal investigators after they uncovered Iran-linked transaction activity on the platform, calling the report “self-contradicting.”
Responding on X to a report published earlier in the day by Fortune, Zhao said he was not familiar with the specifics but argued the account did not add up. If the allegations were accurate, Zhao said, one could just as easily argue that those same investigators failed to prevent suspicious activity in the first place.
Zhao added that Binance runs transactions through multiple third-party anti-money laundering screening tools that are also used by law enforcement agencies.
“You can put a negative narrative on anything by talking to an ‘anonymous source’ who is ‘unhappy’ or paid to FUD,” Zhao wrote.
Fortune reported that members of Binance’s investigations unit were dismissed after flagging activity involving Iranian-linked counterparties on the exchange. The transactions allegedly totaled more than $1 billion over roughly an 18-month period and largely involved transfers of Tether’s USDT stablecoin conducted on the Tron blockchain.
According to the report, at least five investigators were let go starting in late 2025 after internally raising concerns. Several reportedly had law enforcement backgrounds and worked on sanctions evasion and counter-terror financing investigations within the exchange.
Fortune also reported claims that several senior compliance officials have exited in recent months as Binance searches for a successor to Chief Compliance Officer Noah Perlman, who is expected to leave later this year.
The claims surface as Binance continues operating under compliance reforms agreed to as part of its 2023 settlement with U.S. authorities, in which the exchange pleaded guilty to anti-money laundering and sanctions violations and agreed to pay $4.3 billion in penalties. Zhao stepped down as CEO and served a four-month prison sentence as part of the resolution, with Richard Teng taking over leadership of the exchange.
The report also comes amid growing evidence that Iranian entities are increasingly turning to stablecoins to bypass banking restrictions.
In January, blockchain analytics firm Elliptic reported that wallets linked to Iran’s central bank accumulated more than $500 million in USDT, likely to support the country’s currency and facilitate international trade outside traditional financial channels.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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