US Justice Department Reviews Potential Binance Violations of $4.3 Billion Settlement

4 Min Read Tags:
  • The U.S. Department of Justice is reviewing whether Binance complied with obligations under its $4.3 billion settlement with U.S. authorities in 2023.
  • The review comes amid an investigation into whether Binance may have knowingly allowed transactions that violated U.S. sanctions against Iran.
  • If the DOJ finds that Binance breached the settlement, the exchange could face renewed criminal prosecution and multibillion-dollar penalties, according to Bloomberg.

The U.S. Department of Justice is reviewing whether crypto exchange Binance complied with the terms of its $4.3 billion settlement with U.S. authorities in 2023, Bloomberg reported, citing Tyson Duva, head of the department’s criminal division. The review could expose Binance to new charges and multibillion-dollar penalties if the DOJ determines that the exchange breached its obligations.

Duva confirmed the DOJ’s involvement but did not disclose details or claim that Binance had violated the settlement. As of publication, authorities had filed no new charges against the company or its employees.

Potential sanctions violations involving Iran

U.S. federal prosecutors are examining whether Binance may have knowingly allowed transactions that violated U.S. sanctions against Iran.

In September 2026, U.S. prosecutors sought to seize about $61 million in crypto assets. Investigators alleged that the funds came from illegal trade in Iranian oil and that Binance accounts were used to move them.

A separate investigation by The Wall Street Journal identified a network of accounts linked to Iranian financier Babak Zanjani. According to the report, the linked accounts processed transactions totaling roughly $850 million, some of which may have been connected to the Islamic Revolutionary Guard Corps.

Possible consequences for Binance

Under the 2023 agreement, Binance committed to meeting requirements imposed by U.S. authorities, including disclosing information about potential violations of anti-money laundering laws and sanctions.

A finding that Binance breached those obligations could provide grounds to reopen criminal prosecution involving conduct covered by the settlement. Bloomberg reported that the exchange could face new multibillion-dollar penalties, although the review’s outcome remains uncertain.

Duva also spoke positively about cooperation between cryptocurrency companies and law enforcement. He emphasized the DOJ’s interest in voluntary disclosures and resolving disputes without prolonged litigation.

The 2023 settlement and compliance oversight

In November 2023, Binance and its founder, Changpeng Zhao, known as CZ, pleaded guilty to charges brought by U.S. authorities. The exchange agreed to pay about $4.3 billion, while Zhao stepped down as chief executive and later served a four-month prison sentence.

A court approved the agreement in February 2024. Its terms required Binance to strengthen its internal procedures and submit to independent compliance oversight. The DOJ appointed Forensic Risk Alliance to monitor Binance for three years, while the Financial Crimes Enforcement Network imposed separate five-year oversight.

In September 2025, Bloomberg reported that Binance and the DOJ were discussing an early end to the three-year monitorship. Any change to the DOJ arrangement would not automatically end FinCEN’s separate oversight, and the reports did not cite a confirmed final decision.

Reports of a new investigation in September 2026 renewed scrutiny of Binance’s compliance with sanctions against Iran. The DOJ’s review now also covers whether the company fulfilled its obligations under the 2023 settlement.

Source: Incrypted

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