The WSJ, publishing its report on May 21, described Zanjani's London-registered crypto firm Zedcex as a financial conduit for Iran's Islamic Revolutionary Guard Corps (IRGC). Experts cited in the report estimated that around $425 million of the total could have been directed toward funding Iran's military.

Zanjani, sanctioned by the United States in 2013 and a self-described "antisanction operator," reportedly had his Binance account flagged internally yet remained active on the platform into January 2026. Zanjani had briefly benefited from sanctions relief linked to the 2016 nuclear agreement before reportedly being re-sanctioned in early 2026, a timeline that affects when Binance's know-your-customer and sanctions-screening obligations would have fully re-activated.

Teng disputed the characterization directly. "The transactions referenced by the WSJ all occurred before the relevant individuals were designated under sanctions," he said. He also stated that "Binance did not allow any sanctioned individuals to trade on the platform" and accused the WSJ of publishing "fundamental errors about the facts and Binance's compliance system." Teng added that the exchange had proactively investigated the issues before the WSJ contacted them and had provided those findings to the paper, which did not include them in its reporting.

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The legal and regulatory backdrop here is significant. This is not Binance's first collision with US authorities over sanctions compliance. In November 2023, the exchange pleaded guilty to violating anti-money laundering and sanctions laws and agreed to a $4.3 billion settlement with the Department of Justice, FinCEN, and the CFTC, the largest corporate penalty in crypto history at the time. As part of that agreement, two independent compliance monitors were installed: Frances McLeod of Forensic Risk Alliance, reporting to the DOJ on a three-year term, and Sharon Cohen Levin of Sullivan & Cromwell, reporting to FinCEN on a five-year term.

The presence of those monitors makes the latest allegations especially sensitive. If internal compliance flags were raised on the Zanjani account and the account nonetheless remained open, that sequence could become a central exhibit in any monitorship review, legal analysts note. In April 2026, Senator Richard Blumenthal (D-CT) wrote to both the DOJ and Treasury demanding answers about the monitorship's effectiveness, citing what he called "dangerously lax anti-money-laundering prevention by Binance."

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The current WSJ report is the second in a series of escalating allegations. In February 2026, the paper reported that the same Zanjani-linked network had moved $1.7 billion through Binance, prompting the exchange to call those claims "false and defamatory" and demand a retraction. The May 2026 report, alleging a separate $850 million in flows, is the newer of the two allegations. Whether the two figures describe overlapping transactions or fully additive exposures has not been confirmed, and readers should treat any cumulative total with caution until that question is resolved.

By March 2026, Binance had filed a defamation lawsuit against Dow Jones, the WSJ's parent company, in the Southern District of New York. That same month, the DOJ opened a fresh Iran sanctions investigation into Binance's operations.

On-chain data provides additional context: Iran's domestic crypto exchange Nobitex has processed more than $2.3 billion via the Tron and BNB Chain networks since 2023, according to reports citing blockchain data. That figure sits alongside a broader US enforcement push. In April 2026, the United States launched Operation Economic Fury, targeting Iran's financial infrastructure, a development that signals intensifying pressure on the networks under scrutiny here. Blockchain analytics firms may be incorporating such data into evidentiary records related to ongoing sanctions enforcement.

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For users outside the United States, the stakes are concrete. According to data cited by CryptoBriefing, 77 percent of Binance's global user base is located in emerging markets, and 73 percent of its stablecoin savers are in developing economies where the platform often serves as a primary savings and remittance tool rather than a speculative trading venue.

In Nigeria, the relationship is already strained: Binance suspended naira services in early 2024 following the detention of executive Tigran Gambaryan and a government lawsuit seeking billions in damages over alleged currency manipulation. Nigerian users currently access the platform through VPNs and peer-to-peer USDT channels. Fresh DOJ enforcement could expose those users to account freezes with little warning.

In Pakistan, where the Pakistan Virtual Assets Regulatory Authority issued a No Objection Certificate to Binance in December 2025 as part of a supervised licensing process, US pressure creates a complication. Pakistani regulators are likely to demand stronger compliance assurances before approving full operating licenses, particularly given Pakistan's significant informal financial ties with Iran.

In India, where Binance operates as a Registered Reporting Entity under the Financial Intelligence Unit (FIU-IND), the immediate operational risk is lower, but the controversy may accelerate demands for stricter cross-border transaction screening from the Ministry of Finance.

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Binance claims it has reduced its sanctions risk by 97 percent since the 2023 reforms and that roughly a quarter of its global workforce now works in compliance. Those figures will face direct scrutiny as the DOJ probe advances. Neither the WSJ allegations nor Binance's denials have been adjudicated, and the outcome of the defamation lawsuit remains uncertain. Users on the platform, particularly those in markets with no ready alternative for liquidity and local currency on-ramps, should monitor OFAC's Specially Designated Nationals list for any additions related to Zedcex or affiliated entities, as new designations could trigger automatic account restrictions with little advance notice.