Binance’s Post-Settlement Compliance Lapses: A Persistent Challenge

In late 2023, Binance reached a landmark $4.3 billion settlement with U.S. authorities, marking a pivotal moment for the cryptocurrency exchange as it pledged to overhaul its compliance systems and adopt stricter controls. However, recent findings by the Financial Times, based on leaked data, reveal that significant compliance gaps persisted well after this settlement. According to the report, hundreds of millions of dollars in questionable transactions continued to flow through Binance via accounts that had been flagged for suspicious activity. These accounts were allegedly linked to networks associated with Iran and Hizbollah, suggesting that the exchange's mechanisms to prevent illicit financial flows remained inadequate despite its public commitments to reform. The persistence of such transactions underscores the ongoing challenges Binance faces in aligning its global operations with stringent regulatory expectations, particularly from U.S. agencies. For the cryptocurrency industry, this development highlights the critical importance of robust, real-time compliance infrastructure, especially for major exchanges that operate across multiple jurisdictions. It also raises questions about the effectiveness of settlement agreements in driving lasting change, as legacy systems and operational complexities can hinder rapid transformation. As of December 2025, the situation serves as a cautionary tale for other crypto platforms navigating regulatory landscapes, emphasizing that legal resolutions must be backed by tangible, sustained improvements in monitoring and enforcement to maintain trust and operational legitimacy.

Binance Faces Scrutiny Over Suspicious Transactions Post-$4.3B US Settlement

Binance allowed hundreds of millions in questionable transactions to FLOW through flagged accounts even after its 2023 settlement with US authorities, according to Financial Times findings. The exchange’s compliance gaps persisted despite pledging tighter controls as part of a $4.3 billion resolution.

Leaked data reveals accounts tied to alleged Iran- and Hizbollah-linked networks moved funds through Binance as recently as 2025. One Venezuelan slum resident’s account processed $93 million over four years, while another received $177 million in crypto within two years—both later connected to sanctioned entities.

The revelations undermine Binance’s November 2023 plea agreement with the Justice Department, which mandated enhanced oversight. Internal records show the platform continued processing high-risk transactions well into its probationary period.

Binance Under Scrutiny for Alleged Lax Oversight Post-Plea Deal

Binance faces renewed scrutiny after reports surfaced that flagged accounts—some linked to terrorist networks—remained active following its 2023 plea deal. Financial Times identified 13 accounts with $1.7 billion in suspicious crypto flows, including $144 million processed after Binance's settlement date. One Venezuelan user allegedly moved $93 million tied to Iran and Hezbollah.

The exchange failed to detect blatant red flags: users logged in from Caracas and Osaka within hours, changed banking details 647 times in 14 months, or used 496 accounts to off-ramp $177 million. Tether transactions worth $29 million originated from wallets later frozen by Israel under counter-terrorism laws.