Over 2 Trillion Won Moved from Binance to Iran...“Employees Who Found It Were Fired”

"Funds Flowed to Iranian Entities Linked to Terrorist Organizations"

AFP Yonhap News Agency

It has been confirmed that more than 2 trillion won worth of funds flowed from Binance, the world's largest virtual asset exchange, to Iranian companies. As it became known that investigators at Binance who uncovered this fact were fired, suspicions of money laundering are mounting.

On the 23rd (local time), the New York Times (NYT), citing sources, reported that "over the past year, Iranian nationals accessed more than 1,500 Binance accounts, and a total of 1.7 billion dollars (about 2.458 trillion won) in funds flowed to Iranian corporations linked to terrorist organizations," adding that "this flow of funds was identified by Binance's internal investigation team and was immediately reported to the management."

According to the NYT, weeks later Binance's management either fired or suspended the employees who took part in this investigation. The NYT reported that "Binance said the dismissed or suspended investigators violated company policy while handling customer information," and that "it stated that the accounts related to Iran had been deleted." The NYT added that more than six investigators who reported the fund flows to Iran were pushed out of Binance, and that this group is reported to include the head of the in-house compliance team.

The exact reasons for their disciplinary action have not yet been confirmed. The NYT said, "It is still unclear why disciplinary measures were taken against the investigators after the transfers of funds to Iran were identified," adding that "all of the investigators either refused to comment or did not respond to requests for comment."

Because the flow of funds to Iran was discovered only belatedly, and because the investigators were fired for unclear reasons, suspicions of money laundering are arising. The NYT pointed out that "the Binance exchange has at times been used as an attractive vehicle for money laundering, and in 2023 it agreed to pay a 4.3 billion dollar fine following an indictment by the U.S. Department of Justice."

Meanwhile, Binance is a virtual asset exchange founded in 2017 in Shanghai, China, by Changpeng Zhao, a Chinese-Canadian, and has since grown into the largest exchange in the world. On paper, its registered company address is in the Cayman Islands, which are well known as a tax haven. In addition, its offices are in Singapore and the personal address of Chief Executive Officer (CEO) Zhao is in the United Arab Emirates (UAE), which has fueled suspicions of money laundering and tax evasion.