The world’s largest cryptocurrency exchange, Binance, is facing renewed scrutiny following an exclusive report published by Fortune on Friday that raises fresh questions about the exchange’s internal compliance controls and sanctions oversight.
Alleged Sanctions BreachesThe transfers were reportedly conducted using the stablecoin Tether (USDT) on the Tron blockchain. If confirmed, such activity could represent potential violations of US sanctions laws.
The report states that after internal investigators documented their findings and submitted reports through official channels, at least five members of the compliance team were dismissed beginning in late 2025.
In addition to those firings, the report indicates that at least four other senior compliance officials have either resigned or been forced out over the past three months. The individuals cited by Fortune spoke anonymously, citing concerns about potential legal repercussions.
Robert Appleton, a partner at the law firm Olshan Frome Wolosky who previously led sanctions and Iran‑related cases at the US Department of Justice (DOJ), described the situation as surprising.
“That’s rather shocking that that happened under a monitorship with [Binance] internal investigators,” Appleton told the magazine, referencing the government oversight imposed on the company following earlier enforcement actions.
Former Binance CEO Pushes Back On New AllegationsAs part of the resolution, the exchange’s co-founder Changpeng Zhao (CZ) stepped down as CEO, and Binance accepted government‑imposed monitorships intended to strengthen its compliance framework and usher in what the company described at the time as a new era of “regulatory maturity.”
The former executive suggested that, even if the allegations were accurate, an alternative interpretation could be that investigators were dismissed for failing to prevent the alleged transactions.
He further criticized reliance on unnamed sources, suggesting that anonymous accounts can be used to construct negative narratives, particularly if the individuals involved are dissatisfied or have ulterior motives.
Featured image from OpenArt, chart from TradingView.com
