New details from a media investigation have raised questions about whether Binance fully implemented stronger compliance controls after reaching a multibillion dollar settlement with U.S. authorities in 2023. According to the findings, hundreds of millions of dollars continued to move through accounts flagged for suspicious activity even after the exchange agreed to overhaul its anti money laundering systems. The data reviewed spans transactions from 2021 through 2025 and suggests that some high risk accounts were allowed to remain active well beyond the settlement period. These accounts reportedly displayed patterns commonly associated with illicit financial activity, including unusual transaction volumes, frequent changes to linked banking details, and geographic inconsistencies in login behavior. The revelations have intensified scrutiny of Binance’s internal enforcement processes at a time when regulators globally are pressing large exchanges to demonstrate measurable improvements in oversight rather than relying on policy commitments alone.
Among the most concerning cases highlighted were accounts that processed unusually large sums despite multiple red flags. One account registered to a Venezuelan resident reportedly moved around ninety three million dollars through the platform over several years, with some funds later linked by authorities to networks accused of facilitating transfers for Iran and Hizbollah. Another account, registered to a young Venezuelan woman, received more than one hundred seventy million dollars in crypto over a two year period while repeatedly cycling through hundreds of linked bank accounts across multiple countries. Investigators also identified login activity that appeared physically implausible, suggesting possible account compromise or coordinated misuse. In total, data tied to a small group of suspicious accounts showed transaction volumes exceeding one and a half billion dollars, with a notable portion occurring after the U.S. settlement was finalized.
The investigation also drew attention to the role of stablecoins in these transactions, particularly transfers involving Tether USDT that were later linked to wallets frozen under anti terrorism laws. Some of the funds were traced to wallets associated with individuals sanctioned by U.S. authorities in connection with alleged financing of militant groups. Binance has said it maintains strict compliance controls and a zero tolerance approach to illicit activity, pointing to monitoring systems designed to detect and investigate suspicious behavior. However, the findings have renewed debate over the effectiveness of post settlement monitoring, especially as independent oversight was introduced in 2024. The renewed scrutiny comes amid heightened attention on Binance’s governance and regulatory standing, underscoring the challenges large global exchanges face in translating compliance reforms into consistent operational enforcement.
