- Binance processed $144m through flagged accounts after major U.S. settlement
- Investigation links $1.7bn in flows to high risk global networks
- Compliance gaps resurface as political scrutiny around Binance intensifies
Binance has come under renewed scrutiny after an investigation alleged continued high-risk transaction activity following a major U.S. settlement, the Financial Times reported. The investigation states that the crypto exchange processed about $144m through accounts flagged for suspicious behavior after agreeing to tighten compliance controls.
Binance reached a $4.3bn settlement with U.S. authorities and pledged stronger anti-money laundering enforcement. However, internal records reviewed by the newspaper suggest gaps remained after the agreement took effect.
The data reviewed shows that questionable transactions extended from 2021 through 2025 across multiple accounts. Notably, activity recorded after the settlement has raised concerns about how effectively new controls were enforced.
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Flagged accounts and transaction patterns
The Financial Times identified 13 accounts that collectively handled roughly $1.7bn in crypto transactions. Several of these accounts were linked to networks later accused by U.S. and Israeli authorities of moving funds tied to Iran and Hezbollah. One highlighted account was registered to a resident of a Venezuelan slum.
That account moved about $93m through Binance over four years. Investigators traced portions of those funds to wallets later accused of supporting covert transfers for sanctioned groups. Another account example involved a 25-year-old Venezuelan woman who received more than $177m in crypto within two years.
Significantly, the account repeatedly changed linked bank details, cycling through hundreds of bank accounts. Those accounts spanned multiple countries in just over one year, a pattern that often signals unlicensed money transmitting activity. Login records also showed unusual behavior that attracted scrutiny. In one case, an account logged in from Caracas and Osaka within hours.
Compliance specialists say regulated institutions usually flag or suspend accounts displaying such rapid location changes. Stefan Cassella, a former U.S. federal prosecutor cited in the report, said the transaction structures mirrored informal financial networks. Cassella added that such patterns typically trigger immediate escalation within regulated compliance systems.
Binance’s response and wider scrutiny
Binance rejected the investigation’s conclusions in statements to the Financial Times. The exchange said it operates strict compliance systems and maintains zero tolerance toward illicit activity. Additionally, Binance said automated monitoring tools and investigative teams actively review and address suspicious behavior.
The report emerged amid heightened attention involving President Donald Trump. Trump recently pardoned Binance founder Changpeng Zhao for alleged past compliance violations. Consequently, the exchange faces renewed attention from regulators and market observers. The investigation highlights ongoing challenges in enforcing compliance across global crypto markets.
Moreover, it suggests that settlements alone may not guarantee immediate operational changes within large exchanges.
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