Binance is once again under the spotlight after leaked internal data revealed that billions of dollars moved through accounts flagged for suspicious activity, even after the exchange agreed to a landmark $4.3 billion settlement with U.S. authorities in 2023.
Leaked files raise new compliance concerns
According to an investigation by the Financial Times, internal Binance records show that 13 high-risk accounts processed around $1.7 billion in cryptocurrency transactions between 2021 and 2025. Notably, about $144 million of that activity occurred after Binance entered its criminal plea agreement with the U.S. Department of Justice in November 2023.
The findings suggest that accounts already marked with red flags were still able to operate on the platform, raising questions about the effectiveness of Binance’s post-settlement compliance controls.
Unusual accounts and high-risk transaction patterns
One of the accounts highlighted in the report was registered to a resident of a Venezuelan slum and moved approximately $93 million through Binance over four years. Some of these funds were reportedly linked to networks later accused by U.S. authorities of secretly transferring money connected to Iran and Hizbollah.
Another account, registered to a 25-year-old Venezuelan woman, reportedly received more than $177 million in crypto within two years. The account displayed highly unusual behavior, including 647 bank detail changes in just 14 months, cycling through nearly 500 different bank accounts across multiple countries.
A former U.S. federal prosecutor, Stefan Cassella, told the Financial Times that the activity resembled the behavior of an unlicensed money-transmitting operation, a serious compliance red flag under U.S. financial laws.
Impossible logins and sanctioned wallet exposure
The investigation also uncovered login records that appeared physically impossible. One account linked to a Venezuelan bank employee reportedly logged in from Caracas one afternoon and then from Osaka, Japan, early the next morning, suggesting either account compromise or coordinated misuse.
Several of the flagged accounts received USDT stablecoin transfers from wallets later frozen by Israeli authorities under anti-terror financing laws. Some transactions were traced to wallets associated with individuals accused of moving funds for Hizbollah and Iran-backed Houthis. Israel seized related accounts in 2023, and the U.S. Treasury imposed sanctions on key individuals in 2024.
Binance response and broader governance pressure
Binance told the Financial Times that it enforces strict compliance standards and maintains a zero-tolerance policy toward illicit activity, pointing to automated systems designed to detect and investigate suspicious transactions.
However, the revelations arrive at a sensitive time for the exchange. Oversight of Binance has intensified following a presidential pardon granted to founder Changpeng Zhao in October for anti-money laundering violations. Former intelligence officials cited by the newspaper said the pardon, along with evolving political and business ties, has further complicated regulatory supervision.
Adding to the concern, much of the suspicious activity reportedly took place after independent compliance monitors were appointed in 2024, a step intended to strengthen Binance’s internal controls following its U.S. settlement.
Outlook
While Binance remains the world’s largest crypto exchange by trading volume, the latest findings are likely to fuel renewed regulatory pressure. As authorities continue to scrutinize the platform’s compliance practices, questions remain over whether Binance has fully turned the page following its historic plea deal.
