Binance sues The Wall Street Journal for defamation! The report accuses involvement in Iran's financial flow, and the U.S. Department of Justice has simultaneously launched an investigation.

Binance Files Defamation Lawsuit Against The Wall Street Journal, Denies $1 Billion Iran Money Flow Allegations, Faces DOJ Investigation with Exposure Reduced to 0.009%

Binance Sues WSJ for Defamation, Responds to “False and Damaging” Reports

The world’s largest cryptocurrency exchange, Binance, has officially filed a defamation lawsuit against The Wall Street Journal (WSJ) and its parent company, Dow Jones. The legal action was submitted on March 11, 2026, in the Southern District of New York (SDNY), marking a peak in the conflict between the exchange and mainstream media. Binance accuses the media of publishing false and damaging reports on February 23, claiming Binance fired an internal compliance officer who revealed $1 billion in transactions flowing to Iranian entities.

Image Source: Binance

Dugan Bliss, Global Head of Legal at Binance, stated that the lawsuit aims to protect the company’s reputation and correct false public records. He emphasized that media outlets sacrifice journalistic integrity and truth for clicks, which misleads the public and regulators.

Binance’s detailed rebuttal in the complaint refutes the report’s specifics. Regarding the claim that Binance “fired compliance investigators,” Binance clarifies that employee departures were due to personal reasons or violations of internal data security policies, with no connection to whistleblowing on compliance issues.

Binance argues that WSJ rushed to publish without sufficient response time, aiming to outpace competitors. Such false reporting has caused significant damage to Binance’s reputation and triggered unwarranted scrutiny from political and law enforcement agencies. Binance is seeking compensation through legal channels and requests a jury trial to ensure justice.

Further Reading
Did investigators get fired after uncovering $1.7 billion flowing to Iran? Officially denied.

US DOJ Reopens Sanctions Investigation, Focusing on $1 Billion Suspicious Funds

Alongside the lawsuit, regulatory actions are intensifying. According to sources, the US Department of Justice (DOJ) is launching a new investigation into Binance’s alleged evasion of sanctions via Iran. Federal officials are collecting evidence related to over $1 billion in transactions suspected to be linked to sanctioned terrorist groups, including Yemen’s Houthi rebels and Iran’s Islamic Revolutionary Guard Corps (IRGC).

The DOJ has begun interviewing multiple insiders to determine whether Binance still has compliance gaps after reaching a $4.3 billion settlement in 2023. It is currently unclear whether the investigation targets Binance as a company or specific user behaviors on the platform, but the scrutiny places Binance once again under the spotlight.

Reports indicate the investigation focuses on intermediaries like Hong Kong-based payment firm Blessed Trust, accused of helping Chinese clients transfer large amounts of stablecoins into Iran-related wallets. Federal investigators suspect that, despite oversight, complex financial networks are using exchange infrastructure for cross-border transfers.

The Department of Treasury’s compliance monitors have also stepped in, demanding more detailed transaction records. Senator Richard Blumenthal pointed out that nearly $2 billion flowed undetected to sanctioned entities, posing a serious challenge to US financial security and counter-terrorism efforts.

Image Source: Axios, Senator Richard Blumenthal

Compliance Data Shows Resilience, Binance Claims Exposure to Sanctions Down 96%

In response to mounting accusations, Binance released specific compliance data to defend itself. The data shows that exposure to sanctioned entities has significantly decreased, with sanctions-related transactions dropping from 0.284% of total volume in January 2024 to 0.009% in July 2025—a 96% reduction. Direct exposure to Iran’s four major crypto exchanges fell from $4.19 million to $110,000.

Image Source: Binance data showing sanctions-related transactions as a percentage of total trading volume, now at 0.009%

Binance emphasizes that it currently employs over 1,500 compliance and risk management personnel, accounting for about 25% of its global workforce. This professional team handled over 71,000 global law enforcement requests in 2025, demonstrating strong self-regulation.

Binance further explains that the so-called $1.7 billion suspicious funds involve highly complex multi-layered transactions. Internal investigations reveal most funds were transferred through multiple independent intermediaries, not initiated or terminated directly by Binance. Only about $24 million of the funds are confirmed to be linked to IRGC, far less than exaggerated media reports.

Binance states it has always cooperated with law enforcement worldwide and actively blocks suspicious accounts once identified. The core issue is that Binance believes its compliance efforts are being deliberately overlooked, while media sources tend to rely on anonymous tips.

Political Pressure and Legal Wins, Binance Seeks Breakthrough Amid Regulatory Storm

Binance’s current legal and political situation is extremely delicate. Although founder CZ received a presidential pardon in October 2025, and a recent NY federal court dismissed a lawsuit by 535 plaintiffs accusing Binance of supporting terrorism, political pressure in Washington remains intense. Senator Richard Blumenthal has demanded Binance submit detailed transaction records by March 13 and labeled the platform a habitual financial criminal. CEO Richard Teng maintains a tough stance, claiming media reports are sacrificing truth for profit. Binance is actively engaging with Congress to demonstrate its compliance standards.

Further Reading
Binance demands foreign media remove “Iran Money Flow” exposé! US Senator blasts: It’s just Trump’s pardon of CZ, ending crypto war but sparking political controversy.

Market data shows that despite short-term volatility caused by lawsuits and investigations, investor confidence in Binance remains intact. The platform holds over $151.2 billion in reserves, with 24-hour spot trading volume around $10 billion. Legal experts note that Binance’s decision to sue media while facing DOJ investigations is a rare and bold legal strategy. It aims to use the discovery process to compel media to disclose evidence and demonstrate innocence to regulators. This storm, combining defamation, national security probes, and political battles, will determine Binance’s future in the US market over the coming years.

This incident also highlights the ongoing challenges faced by the crypto industry in mainstreaming, as traditional media and regulators scrutinize more intensely. As regulatory environments tighten in 2026, Binance’s ability to defend its reputation and pass DOJ scrutiny will be a key industry indicator. Binance states it will continue strengthening cooperation with global law enforcement and fight for justice in court.