Why is the US Treasury pressuring Binance again?

The US Treasury reportedly pushed Binance to fully comply with a monitoring programme tied to its 2023 settlement with US authorities. The renewed scrutiny followed allegations that roughly $1 billion in transactions linked to entities tied to Iran flowed through the exchange.

What was Binance’s 2023 settlement with US authorities?

Binance agreed to a $4.3 billion settlement with the US Treasury and Department of Justice in 2023 over anti-money laundering and compliance failures. The deal also required Binance to operate under a three-year independent monitoring programme.

What is the monitoring programme Binance must follow?

The monitoring arrangement requires Binance to cooperate with oversight officials reviewing its anti-money laundering controls, compliance systems and transaction monitoring practices. The programme was designed to ensure Binance improves regulatory compliance after the settlement.

Why are the Iran-linked transaction allegations significant?

US sanctions laws place strict restrictions on financial activity connected to Iran-linked entities. Reports suggesting large transaction flows through Binance could raise concerns about sanctions compliance and anti-money laundering enforcement.

How did Binance respond to the Treasury pressure?

Binance said it is fully cooperating with regulators and the independent monitor overseeing the settlement agreement. The company also said it welcomed feedback from US authorities as part of strengthening its compliance controls.

What role does the US Treasury play in crypto enforcement?

The Treasury Department oversees financial crime enforcement, sanctions compliance and anti-money laundering regulations through agencies including FinCEN and OFAC. Crypto exchanges operating globally often face Treasury scrutiny because of cross-border transaction risks.

Why are US senators involved in the Binance case?

Some senators reportedly asked Treasury Secretary Scott Bessent to review whether Binance is complying with its settlement obligations. Lawmakers remain concerned about crypto-related sanctions risks and financial crime oversight.

How does this affect Binance’s reputation with institutions?

Continued regulatory scrutiny may make some institutional partners more cautious about working with Binance. Large financial firms generally prefer platforms with strong compliance records and stable regulatory relationships.

US Treasury presses Binance over compliance oversight

Written by Liezl GambePublished May. 8 2026Last Updated May. 8 2026

Binance reportedly faced renewed pressure from the US Treasury Department over compliance obligations tied to the crypto exchange’s 2023 settlement with US authorities.

According to The Information, Treasury officials privately demanded Binance adhere to a three-year monitoring programme established under the company’s $4.3 billion settlement agreement with the Treasury Department and US Department of Justice.

The reported intervention followed allegations that roughly $1 billion flowed through Binance to entities linked to Iran, with reports claiming some staff responsible for flagging the transactions were later dismissed by the exchange.

“Binance is committed to cooperating with the independent monitor and our ongoing collaboration with relevant agencies,”

A Binance spokesperson said in a statement responding to the report.

The exchange added that it welcomed feedback from Treasury officials and was providing “full cooperation and transparency” as part of ongoing anti-money laundering and compliance oversight efforts.

The issue also drew political scrutiny after a group of US senators reportedly urged Treasury Secretary Scott Bessent to review Binance’s adherence to the terms of its 2023 settlement.

The developments come amid broader scrutiny surrounding Binance’s connections to Trump-linked crypto ventures, including a $2 billion investment into the exchange using the USD1 stablecoin issued by World Liberty Financial.

Former Binance chief executive Changpeng Zhao meanwhile said at Consensus 2026 that he had no plans to lead another crypto company after stepping down from Binance following the 2023 settlement.

At the time of reporting, World Liberty Financial price was $0.07283.