- A report from Fortune claims Binance fired at least five members of its compliance team after they flagged over $1 billion in sanctioned transactions.
- CZ, Richard Teng, and Yi He have all condemned the report, denying any sanctions breach at the exchange; CZ says the sources were paid to spread FUD.
Binance fired at least five employees from its compliance and internal investigations teams after they flagged over $1 billion in transactions conducted by sanctioned parties from Iran, Fortune reports.
In its exposé, the outlet claimed to have talked to some of the fired employees and reviewed some private documents implicating the exchange’s leadership in the scandal. The sources say the compliance team discovered that the exchange had facilitated transactions worth over $1 billion by Iranian entities between March 2024 and August last year. The transactions were reportedly conducted via Tether’s USDT stablecoin on the Tron network.
The team then presented their findings to the top brass through the internal pipeline, but shortly after, they were fired. Some of the employees held senior roles on the exchange’s division that oversees compliance with sanctions evasion and counter-terrorism financing laws. Three had left their positions in law enforcement authorities in Europe and Asia to join the exchange.
It’s not Binance’s first brush with the law. Former CEO and co-founder Changpeng ‘CZ’ Zhao was sentenced to four months in prison, and the exchange had to pay $4 billion in penalties after it was found guilty of violating sanctions and breaching anti-money laundering laws. The conviction also forced CZ to step down from his CEO role, which is now shared by Richard Teng and co-founder Yi He.
CZ: Sources ‘Paid to FUD’ Against Binance
When asked about the allegations, the exchange gave a diplomatic response that neither denied nor confirmed the accusations. A spokesperson said that it cannot comment on personnel cases, and it will dismiss any employee who breaches company policy.
“As a matter of policy, we cannot comment on ongoing investigations. Binance is committed to complying with all applicable sanctions laws and regulations in the markets where it operates,” he added.
The leadership wasn’t as reserved. CZ said that the article contained self-contradicting information and that the staff members could have been fired for failing to prevent the sanction violations, not for disclosing them to management. He questioned the authenticity of the anonymous sources, speculating that they could have been ‘paid to FUD.’
I don’t know any details or who, but just reading the article, it’s self contradicting 👇.
One could also make a narrative “maybe they were fired because they didn’t prevent it?” IF it were even true. It would also mean the 3rd party tools (the same used by law enforcement)… pic.twitter.com/3JSdGGMcsV
— CZ 🔶 BNB (@cz_binance) February 13, 2026
Teng’s remarks were even more scathing, stating:
“Irresponsible and misleading press articles based on anonymous sources (whether including possibly disgruntled ex-employees or otherwise) does injustice to the great work of our more than 1300 compliance staff working tirelessly to uphold global standards.”
He claims that the compliance team self-reported the sanctions breaches to the authorities and cooperated with them during investigations.
Yi He reiterated this view, claiming that the exchange has been proactively initiating investigations and sharing findings with law enforcement. She attributed the staff firings to the exchange’s effort to upgrade its talent.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Designating sports event contracts as derivatives! The U.S. CFTC blocks local enforcement, seeking regulatory authority over prediction markets
The U.S. federal government is working with the CFTC and the Department of Justice to try to shift regulatory authority for Kalshi prediction markets from local governments to the federal level, arguing that sports betting contracts are financial derivatives. If the court backs this position, it will change the legal status of prediction markets and standardize regulation nationwide, reducing the influence of local gambling laws.
CryptoCity5m ago
Sports-betting contracts are considered derivatives! The U.S. CFTC blocks local law enforcement, seeking regulatory authority over prediction markets
The U.S. federal government is working with the CFTC and the Department of Justice to try to shift regulatory authority over Kalshi prediction markets from state and local governments to the federal level, arguing that sports betting contracts are financial derivatives. If the court backs this position, it would change the legal status of prediction markets and standardize regulation nationwide, reducing the impact of state-level betting laws.
CryptoCity3h ago
Japan Approves Bill to Treat Crypto as Financial Products Under Securities Law
Japan's cabinet has approved a bill to classify crypto assets as financial products under securities law, prohibiting insider trading and requiring annual disclosures from issuers, marking a significant shift towards stricter regulation of the crypto sector.
CryptoNewsFlash3h ago
Hong Kong Monetary Authority Deputy Chief Executive: If a stablecoin issuer wants to issue a Renminbi-pegged stablecoin, it must obtain approval from mainland regulatory authorities
Hong Kong Monetary Authority Deputy Chief Executive Officer Chen Weimin said that stablecoin issuers may choose to issue currencies such as Hong Kong dollars or renminbi based on their own discretion, but must obtain regulatory approval from the Mainland. As for the timetable for the second batch of stablecoin issuer licenses, there is no schedule yet. HSBC’s stablecoin will be integrated with PayMe and the HSBC HK App, supporting real-time transfers and person-to-merchant services.
GateNews3h ago
Crypto regulation mega-centralization! The European Central Bank supports having “crypto service providers” directly regulated by the EU ESMA under unified supervision
The European Central Bank (ECB) supports consolidating financial regulatory powers under the European Securities and Markets Authority (ESMA) to unify the regulation of large crypto asset service providers, strengthen the EU’s competitiveness, and counter the United States and China. However, the ECB proposed that it must ensure ESMA has sufficient resources and reduce market disruption, and it is expected that the proposal will still need to be negotiated among EU lawmakers.
動區BlockTempo4h ago
Will Taiwan’s special legislation shut down USDT withdrawals? An anonymous accountant posted to spark panic—here’s the full truth in one place
Recently, anonymous individuals claiming to be accountants have made statements online, saying that the draft of Taiwan’s newly passed “Virtual Asset Services Act” will prohibit the circulation of Tether (USDT) and has sparked panic. In response to this claim, Max, editor-in-chief of Crypto City, said the interpretation of the regulations in this statement is overly pessimistic, and emphasized that the purpose of the bill is to establish a compliance framework rather than a comprehensive crackdown. The article calls on the public to stay rational when facing community-driven panic posts, and to choose legitimate providers for crypto trading to avoid fund risks and scams.
区块客4h ago
