Iranian Businessman Sanctioned by U.S. Linked to Cryptocurrency Transactions

Babak Zanjani, an Iranian businessman who has been sanctioned by the United States for his dealings with Iran’s Revolutionary Guards Corps, reportedly executed around $850 million worth of cryptocurrency transactions on Binance, the largest cryptocurrency exchange globally. This information comes from a report by the Wall Street Journal.

These transactions reportedly occurred over a period of two years, primarily through a single trading account that had been active for at least 15 months prior to January—just a month before the onset of the US-Israel conflict with Iran. The report indicated that “the huge sums demonstrate how Binance has been leveraged as a financial channel for the Revolutionary Guard Corps,” referring to Iran’s influential Islamic Revolutionary Guard Corps.

According to documents from Binance, as well as insights from law enforcement and other sources, it was noted that these transactions—including both withdrawals and deposits—were conducted despite numerous warning signs raised by internal investigators at Binance. Furthermore, it’s estimated that approximately $425 million was funneled to support Iran’s military.

The transactions were facilitated through a series of accounts that Mr. Zanjani, alongside associated individuals like his sister and girlfriend, operated from the same device. This has raised eyebrows, especially considering Zanjani’s longstanding role in Iran’s network for evading sanctions. He was sentenced to death in 2016 for embezzlement, although his sentence was later commuted to 2024. Now, he finds himself tangled in disputes with Iran’s central bank over his failure to return billions he allegedly embezzled. In December, he even publicized his crypto wallet address on social media, prompting outside analysts to uncover the complexity of his sanctions-evasion strategies centered around the Iranian crypto exchange Nobitex.

Zanjani’s network has reportedly enabled over $1.7 billion in transfers through Binance, with internal reports from November stating that funds were moved “from customers in China to digital wallets used by Iran to finance its agencies.” Earlier this year, it was highlighted that Binance had disbanded the team responsible for probing into its cash flow activities.

Foreign law enforcement officials have managed to trace billions of dollars flowing through Binance accounts linked to the Iranian regime. They identified these transactions just earlier this month.

Currently, Binance—which has previously filed a lawsuit against the Journal for its earlier reporting—claims that the transactions associated with Zanjani “have nothing to do with” its platform and asserts that it “does not endorse any illegal activities on its platform.”

In an interesting twist, Binance’s founder Qiao Changpeng had a guilty plea last year regarding violations of money laundering and sanctions laws in the United States. Although former President Donald Trump pardoned him, the investigation into Binance’s role in helping Iran evade sanctions remains a significant concern. Additionally, Binance is known to be a major supporter of World Liberty Financial, a cryptocurrency venture associated with the Trump family.

Moreover, recent reports indicated that Nobitex has been utilizing BNB Chain and Tron—blockchains founded by Changpeng and fellow crypto billionaire Justin Sun—since 2023, with Iranian funds continuing to navigate these digital systems during the recent conflict. Users of Tron and BNB Chain incur fees to utilize these blockchains, which serve as reliable record-keepers.

While both Binance and Sun are linked with World Liberty Financial, there is no evidence to suggest that the Trump family was aware of Nobitex’s dealings with these blockchain platforms.

Since Trump’s administration commenced, a variety of crypto-friendly policies have been established, coupled with the suspension of enforcement actions against crypto firms and influential figures. In March, the Securities and Exchange Commission reached a settlement with Sun related to a fraud case, resolving it for $10 million without him admitting any fault.