Binance has filed a defamation lawsuit against the Wall Street Journal (WSJ). This legal strike comes after the reports published on February 23, 2026, by the WSJ, claiming Binance executives dismantled an internal investigation into crypto flows linked to Iran-backed terror groups.
Binance describes the piece as containing multiple false and defamatory statements that have damaged the exchange’s reputation.
What the WSJ report claimed
The February report alleged that shortly after President Donald Trump pardoned Binance founder Changpeng Zhao, Binance executives shut down an internal compliance investigation.
The WSJ article reported that Binance stopped an internal probe that had uncovered over $1 billion in crypto moving through the exchange to Iran-backed militant groups. Those groups are linked to Iran’s Islamic Revolutionary Guard Corps, which the United States designates as a terrorist organization.
The report alleged that a close business partner, a Hong Kong-based payments company called Blessed Trust, moved these stablecoins to a “Chinese Nexus” linked to Iran’s Revolutionary Guard. According to the story, Binance suspended or dismissed the investigators shortly after they presented their findings to senior leadership, including Chief Executive Richard Teng.
The report suggests that Binance is repeating the same mistakes that led to its massive $4.3 billion settlement in 2023. Back then, the exchange admitted it was a hub for criminals, terrorists, and people trying to dodge sanctions on Iran.
Binance denies the allegation.
In an official statement released by Binance, the exchange denied dismantling the investigation or terminating employees, stating the investigation continued, leading to the offboarding of suspicious accounts and reports to law enforcement.
Binance argues the WSJ ignored 27 pages of factual corrections. They claim only $24 million was actually linked to IRGC-associated wallets discovered by the Binance internal team investigation.
Binance highlighted the strength of its compliance infrastructure, which now includes more than 1500 specialists representing nearly one quarter of its global workforce and $700M invested in monitoring tools, sanctions screening, transaction analysis, and on-chain tracing technology.
Binance seeks damages in lawsuit
In the court filing, Binance accused WSJ of disregarding specific factual corrections it submitted before publication. Binance argued that these false reports seriously hurt its reputation and business, causing unnecessary investigations by government officials. Binance is seeking compensatory damages in an undisclosed amount, recovery of legal fees and related costs, and a trial by jury.
The lawsuit was announced on the same day WSJ published a follow-up article stating that the United States Department of Justice has opened an investigation into Iran’s possible use of Binance to bypass sanctions.
Binance stated that it has received no formal notice of any Justice Department investigation and reiterated its ongoing willingness to cooperate fully with regulators whenever required.
Binance presented the lawsuit as an important step to safeguard its good name and preserve confidence among its users. The WSJ has responded that it stands by the accuracy and integrity of its reporting.
