In 2023, the crypto exchange Binance pleaded guilty to violating anti-money-laundering (AML) and know-your-customer (KYC) laws, as well as sanctions regulations. The company agreed to pay a staggering $4.3 billion, marking one of the largest corporate fines in U.S. history. Binance founder Changpeng Zhao, widely known in the industry as “CZ,” pleaded guilty to failing to implement proper oversight over the company’s operations and was subsequently sentenced to four months in prison. As part of the settlement, Zhao agreed to step down as CEO, and Binance consented to government-imposed monitorships and pledged to enter a new phase of “regulatory maturity,” signaling a commitment to strengthen internal compliance processes and regain trust with regulators worldwide.

However, recent developments suggest that Binance may be reneging on those promises. According to multiple sources and internal documents reviewed by Fortune, investigators within the company’s compliance team discovered evidence that entities linked to Iran had received more than $1 billion through Binance between March 2024 and August 2025, potentially in violation of U.S. sanctions laws. These transactions were conducted using the stablecoin Tether on the Tron blockchain, raising serious concerns about the company’s continued ability—or willingness—to enforce its compliance framework effectively.

Following the surfacing of these findings, at least five investigators involved in the case were fired starting in late 2025, according to sources who spoke to Fortune on the condition of anonymity due to fear of legal repercussions. Several of the investigators who were dismissed had previously held law enforcement positions in Europe and Asia, bringing significant experience in sanction enforcement, counter-terror financing, and global financial investigations. Some had even occupied leadership roles within Binance, overseeing teams responsible for monitoring complex transactions and detecting regulatory breaches.

The precise reasons behind these firings remain unclear. Former staffers publicly announced their departures on LinkedIn, but none provided specific details regarding the circumstances of their exits. Multiple individuals contacted declined to comment, citing confidentiality agreements or concerns about legal exposure. Beyond the dismissals of these five investigators, at least four senior compliance staff members have either left voluntarily or were pushed out over the past three months, according to public filings and sources familiar with the company’s internal operations.

"That's rather shocking that this happened under a monitorship with Binance’s internal investigators," said Robert Appleton, a partner at the law firm Olshan Frome Wolosky who led sanctions and Iran-related cases at the Department of Justice. Appleton emphasized that such firings could undermine the credibility of Binance’s commitment to regulatory compliance, particularly at a time when the company is under intense scrutiny from multiple government agencies and financial regulators globally.

The timing of the dismissals appears to coincide with significant U.S. political developments that have favored Binance. Among these, former President Donald Trump’s rollback of crypto oversight stands out. In October, Trump granted Zhao a pardon for his 2023 guilty plea, a move that followed Binance’s lobbying efforts in Washington, D.C., and the company’s assistance with launching the Trump family’s crypto initiative, World Liberty Financial, including its own stablecoin. Critics argue that these political interventions may have created an environment in which Binance feels less pressure to rigorously enforce compliance protocols.

The firings also coincide with Binance’s search for a replacement for Noah Perlman, a former U.S. prosecutor who was hired in 2023 as the company’s chief compliance officer. Perlman, a high-profile addition to Binance’s leadership team, remains with the company but reportedly plans to transition out later this year. According to a source familiar with Binance’s internal dynamics, Perlman’s departure is unrelated to the recent dismissals of investigators, though it does raise questions about continuity in the company’s compliance operations and institutional knowledge.

In response to inquiries, a Binance spokesperson said, "As a matter of policy, we cannot comment on ongoing investigations. Binance is committed to complying with all applicable sanctions laws and regulations in the markets where it operates." The statement added that the company cannot discuss individual personnel cases and that employees who violate company policy are subject to dismissal. The spokesperson further emphasized that Binance continues to collaborate closely with law enforcement partners to protect users and the broader ecosystem and that its core compliance teams remain operational and focused on maintaining regulatory standards.

Founded in 2017, Binance rapidly grew into the world’s largest cryptocurrency exchange, with billions of dollars in daily trading volume and millions of users across the globe. Its meteoric rise, however, brought a flood of regulatory and legal scrutiny. As authorities worldwide began investigating the company, Binance launched an internal initiative to reform its compliance practices, hiring former law enforcement officials and financial regulators from countries including the U.K., Singapore, and the United States. The goal was to demonstrate the company’s commitment to adhering to global financial regulations and to repair its public image after years of allegations of lax oversight.

When the DOJ announced its settlement with Binance in November 2023, prosecutors noted that both the company and Zhao had consistently prioritized wealth over regulatory compliance. According to the DOJ, Binance had facilitated billions of dollars in illicit transactions between users in sanctioned countries, including Iran, Cuba, and Syria. "A corporate strategy that puts profits over compliance isn’t a path to riches; it’s a path to federal prosecution," said Deputy Attorney General Lisa Monaco at the time. The settlement represented both a punitive and corrective measure, designed to enforce accountability and deter similar behavior within the rapidly growing crypto industry.

As part of the settlement, Zhao stepped down as CEO, and Binance promoted Richard Teng, a former financial regulator in Singapore and the United Arab Emirates, to lead the company. Teng’s appointment was seen as a signal that Binance intended to institutionalize compliance and build a culture of regulatory responsibility. By November 2024, the company announced plans to expand its full-time compliance staff by 34%, aiming to reach 645 employees by the end of the year. Despite these efforts, the recent firings and internal conflicts raise questions about whether Binance has truly internalized the lessons of its 2023 guilty plea or if corporate culture continues to favor aggressive business growth over strict compliance.

Binance remains actively hiring, with multiple compliance positions still listed on its job platforms, indicating that the company recognizes the ongoing need for specialized talent to navigate increasingly complex regulatory landscapes. However, the simultaneous departures of key compliance personnel and the alleged continued processing of transactions connected to sanctioned entities suggest that Binance faces both internal and external challenges in maintaining credibility with regulators, law enforcement, and the public.

The unfolding situation underscores the tension between rapid innovation and regulatory oversight in the cryptocurrency industry. Binance, like other leading exchanges, operates in a sector where technology often outpaces legislation, creating opportunities for growth but also exposing companies to significant legal and ethical risks. The recent events involving Iran-linked transactions, combined with the high-profile dismissals of compliance investigators, highlight the precarious balance that Binance—and the crypto industry more broadly—must strike between expansion, profitability, and legal accountability.

Looking ahead, the company’s ability to sustain its global dominance may hinge on its willingness to demonstrate genuine regulatory maturity. Analysts suggest that ongoing scrutiny from the DOJ, the Financial Crimes Enforcement Network (FinCEN), and international financial authorities could result in additional penalties or restrictions if Binance fails to maintain robust compliance standards. In this context, the experience of other fintech firms suggests that regulatory lapses not only risk financial penalties but can also damage reputation and erode user confidence, potentially affecting market share and long-term growth.

Ultimately, Binance’s story illustrates the broader challenges facing the cryptocurrency sector. Rapid technological innovation, cross-border financial operations, and complex legal frameworks create a dynamic environment that rewards ingenuity but punishes lapses in oversight. For Binance, maintaining regulatory credibility while continuing to expand globally represents a critical test—one that will likely influence the trajectory of the entire industry for years to come.