Binance allowed potentially suspicious crypto transactions to continue after US settlement

The crypto exchange Binance is also said to have processed suspicious money flows after a billion-dollar fine in the United States. This is evident from internal data seen by the Financial Times. The findings raise questions about the effectiveness of the stricter controls that Binance promised to introduce in 2023.

Shortcomings previously recognized

In November 2023, Binance entered into a criminal settlement with the US government worth $4.3 billion. The company acknowledged shortcomings in anti-money laundering and pledged to significantly improve its oversight and compliance. However, the new research shows that a network of thirteen Binance accounts remained active after this agreement.

As of 2021, this network processed approximately $1.7 billion in crypto transactions, according to the Financial Times. About $144 million of that was transferred after the settlement had already been closed.

Accounts linked to risk countries

The documents viewed contain identity information, login locations and transaction histories. The accounts involved were linked to users in Venezuela, Brazil, Syria, Niger and China, among others. These countries are often seen by regulators as being at increased risk due to weaker financial controls or international sanctions.

According to regulatory and anti-money laundering experts, the transactions show patterns that would normally be classified as suspicious. They wonder whether Binance has actually fully implemented the promised improvements.

Striking transactions and impossible login locations

One of the accounts investigated, linked to a 25-year-old woman from Venezuela, received more than $177 million in two years. In a period of fourteen months, the associated bank details were adjusted 647 times. Former prosecutors say this type of activity usually prompts immediate investigation.

Another account, in the name of a young bank employee from a poor neighborhood in Caracas, processed about $93 million between 2022 and May 2025. Internal logs show that the account was used within one day from Caracas and later from Osaka, Japan. According to experts, this is physically impossible and a clear warning signal.

Connection to later frozen wallets

All thirteen accounts together received approximately $29 million in the stablecoin USDT. This money came from digital wallets that were later frozen by Israel under anti-terrorism laws. According to experts, this reinforces concerns about the supervision of suspicious financial flows.

Response from Binance

Binance says it rejects the Financial Times’ conclusions. A spokesperson said the company takes compliance very seriously and transactions are always assessed based on the information available at the time. According to Binance, the said accounts were not sanctioned when the transactions took place.

In addition, the company emphasizes that it has been under independent supervision since 2023 and works according to high standards in the field of anti-money laundering, sanctions screening and cooperation with investigative services.

Experts point to supervision problem

Nick Heather, head of trading at digital asset services firm ONE.io, says the issue mainly highlights inadequate supervision. According to him, it is less about the crypto market itself and more about how companies deal with signals of possible abuse.

According to Heather, strong governance, continuous monitoring and rapid escalation of risks are essential, especially as digital financial markets continue to mature.

Background to the US settlement

During the settlement in 2023, US authorities concluded that Binance had failed to report suspicious transactions for years. This would involve more than 100,000 cases, including payments related to ransomware, drug trafficking, sexual abuse of minors and terrorist organizations such as Al Qaeda and ISIS.

The Financial Times report appears in a politically sensitive climate. In October, US President Donald Trump pardoned Binance founder Changpeng Zhao. That decision led to renewed attention for the role and responsibility of the world’s largest crypto exchange.