The Binance cryptocurrency exchange has taken legal action against the Wall Street Journal by filing a defamation lawsuit in the Southern District of New York. The lawsuit, filed on March 11, alleges that the newspaper published false claims about the exchange’s compliance controls and handling of Iran sanctions data.
The dispute revolves around a February report that alleged Binance knowingly processed over $1 billion for sanctioned entities. This news has caused the price of BNB to drop by 1% to $640 as investors react to the potential legal implications for Binance.
CEO Richard Teng has refuted the reporting as inaccurate, stating that the outlet disregarded documented evidence provided before publication. The Wall Street Journal article titled “Binance Fired Staff Who Flagged $1 Billion Moving to Sanctioned Iran Entities” depicted internal turmoil at the world’s largest crypto exchange.
It alleged that compliance staff were fired for identifying illicit flows, not for policy breaches. The report claimed that Binance processed $1.7 billion in transactions linked to Iranian entities, including a Hong Kong-based fiat-to-crypto converter named “Blessed Trust,” despite internal red flags.
These allegations come at a critical time for crypto regulation, with Democrats introducing bills to ban platforms like Polymarket over compliance concerns. Binance has responded by emphasizing its industry-leading compliance efforts, stating that it has achieved a 96.8% reduction in sanctions exposure risks through upgraded protocols.
The exchange claims to have offboarded the “Blessed Trust” account and reported it to law enforcement in 2025, contradicting the WSJ report’s suggestion that the activity was ongoing. The lawsuit seeks compensatory and punitive damages, arguing that the report caused irreparable harm.
This legal action follows a recent court victory for Binance, where a federal judge dismissed a lawsuit alleging the exchange facilitated terrorist financing. Traders are closely monitoring this case as a test of the “actual malice” standard in crypto reporting.
The focus now shifts to the response from the WSJ and whether the regulatory inquiry sparked by the article will continue without the media narrative. Stay tuned for updates on this evolving story.
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