It was belatedly confirmed that a large sum totaling 2.5 trillion won flowed to Iran through the world's largest cryptocurrency exchange, Binance Holdings Ltd..
According to the New York Times (NYT) on the 23rd (local time), over the past year Iranian nationals accessed more than 1,500 Binance Holdings Ltd. accounts, and a total of $1.7 billion (about 2.4582 trillion won) flowed to Iranian entities linked to terrorist groups.
After confirming this flow of funds, an internal investigative team at Binance Holdings Ltd. immediately reported it to management. However, weeks later, management fired or suspended at least four employees who took part in the probe, the NYT reported, citing multiple sources.
Binance Holdings Ltd. said the investigators who were fired or suspended violated company rules while handling customer information, and that the Iran-related accounts were deleted. A Spokesperson for Binance Holdings Ltd. told the Guardian in the U.K., "We did not violate sanctions laws in connection with the relevant transaction," denying claims that employees were fired for discovering the facts.
Binance Holdings Ltd. is a cryptocurrency exchange founded in 2017 in Shanghai by Zhao Changpeng, a China-born Canadian. On paper, the company address is in the Cayman Islands, its office is in Singapore, and Zhao's personal address as chief executive officer (CEO) is in the United Arab Emirates (UAE). Because of this, Binance Holdings Ltd. has been embroiled in allegations of money laundering and tax evasion.
Earlier, the U.S. Securities and Exchange Commission (SEC) and the Department of Justice indicted CEO Zhao on charges including money laundering, and he later pleaded guilty and agreed to pay a $4.3 billion fine. However, after a long lobbying campaign in which Binance Holdings Ltd. helped World Liberty, a cryptocurrency firm of the Trump family, secure a large investment, CEO Zhao was pardoned in Oct. last year.