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Binance(CRYPTO: BNB) Co-CEO Richard Teng said Tuesday that the cryptocurrency exchange has “zero tolerance” for sanctions violations after the U.S. Justice Department sought forfeiture of approximately $61 million in cryptocurrency that prosecutors allege was tied to proceeds from black-market sales of sanctioned Iranian oil.
‘Black Market Sales’ of Sanctioned Oil
The funds are suspected to be the proceeds from “black-market sales of sanctioned Iranian oil and petroleum products,” intended to finance the Iranian government and its military components, including Iran’s Islamic Revolutionary Guard Corps, according to a press release shared on Monday.
Prosecutors said two Chinese companies, Blessed Trust and Hexa Whale, used Binance’s trading accounts to launder these illegal proceeds. Prosecutors did not accuse Binance of any wrongdoing.
Teng Responds
Teng said on X that the exchange has “zero tolerance” for sanctions violations.
He added that Binance will always “investigate, restrict or freeze accounts” where sanctions or illicit-finance risk is identified. and will report to relevant authorities.
“We will continue to cooperate with law enforcement on this matter, as we have done since it was first raised months ago,” Teng stated.
Iran-Linked Activity Puts Pressure Binance
Binance has faced intense scrutiny regarding transactions involving its platform and Iranian entities.
Several outlets, including the Wall Street Journal, reported in February that the exchange had shut down an internal investigation into $1.7 billion allegedly flowing to Iran-backed terror groups. Sen. Richard Blumenthal (D-NY) opened an inquiry into the matter.
Binance dismissed the reports as “demonstrably false” and “defamatory” and went on to sue the WSJ.
Photo courtesy: Mehaniq on .com
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