The Treasury Department sent a letter to Binance demanding the exchange stick to the compliance monitoring programme it agreed to in 2023, according to reports this week. The move follows allegations that the platform facilitated $1 billion in transactions to entities tied to Iran.
The letter, sent privately according to The Information, reminded the exchange of its obligations under the settlement struck with US authorities in November 2023. The deal, which included a $4.3 billion settlement, required Binance to comply with a three-year compliance monitoring programme overseen by government officials. The letter followed reports that Binance sacked staff who flagged $1 billion in transactions flowing through the platform to entities tied to Iran.
The compliance monitoring programme
The 2023 settlement with the Treasury Department and the Department of Justice came after years of scrutiny over the exchange’s anti-money laundering controls. Former chief executive Changpeng Zhao pleaded guilty to one felony charge related to failure to maintain an adequate AML regime. He resigned the day the deal was announced.
The Binance compliance monitoring arrangement put an independent monitor in place to oversee the exchange’s remediation efforts. Treasury’s letter this week, as reported, pressed the company on whether it is meeting the terms. A group of senators wrote separately to Treasury Secretary Scott Bessent asking for an update on adherence to the settlement.
| Event | Date | Detail |
|---|---|---|
| Settlement agreed | November 2023 | $4.3 billion fine, three-year monitoring |
| Zhao guilty plea | November 2023 | AML violations, resignation as CEO |
| Iran transaction reports | 2025 | $1 billion allegedly facilitated |
| Treasury letter | May 2025 | Compliance monitoring reminder |
Binance response
Binance said it is committed to cooperating with the independent monitor and described the Binance compliance monitoring arrangement as part of strengthening its anti-money laundering controls. A spokesperson said the exchange welcomes feedback from Treasury and views the oversight as important. The company said it is providing full cooperation and transparency to the monitor.
The exchange has come under fresh scrutiny since a United Arab Emirates-based entity invested $2 billion in Binance using the USD1 stablecoin issued by World Liberty Financial, the company co-founded by US President Donald Trump and his sons. Trump pardoned Zhao in October 2025.
Zhao at Consensus
The Treasury letter emerged the same day Zhao appeared at the Consensus conference in Miami. The former CEO said he had been trying to avoid the US but floated the idea of reviving Binance.US to give users access to global liquidity. He ruled out leading another crypto company. Said he does not have the stamina to run another startup. Called himself a one-trick pony.
Zhao resigned as Binance CEO in November 2023 as part of the settlement. He served a reduced sentence and was released earlier this year. The Financial Crimes Enforcement Network, part of Treasury, has been among the agencies pushing for tighter compliance in the crypto sector since the FTX collapse in 2022.
What happens next
The three-year monitoring period runs until November 2026. Treasury has not said publicly whether it considers Binance in breach of the settlement terms. The senators’ letter asked Bessent to report on the exchange’s adherence. No timeline for a response has been given. The exchange said it is working with the monitor and expects the oversight to continue as agreed.
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