Binance allowed hundreds of millions of dollars to move through suspicious accounts even after promising to strengthen compliance as part of a $4.3 billion US criminal settlement in 2023, according to an exclusive Financial Times (FT) investigation.

Binance Let Suspicious Accounts Trade After $4.3B US Settlement

Internal files reviewed by the FT reveal accounts with red flags - including connections to terror financing networks, impossible login patterns, and failed identity checks - kept trading well after the November 2023 plea agreement. The leaked data covers transactions from 2021 through this year.

One account belonged to a resident of a Venezuelan slum who moved $93 million through Binance between 2021 and 2025. Part of those funds came from a network later accused by US authorities of secretly moving money for Iran and Lebanon's Hizbollah.

The FT obtained data for 13 suspicious accounts that handled $1.7 billion in transactions, with $144 million occurring after the settlement. One account registered to a 25-year-old Venezuelan woman received over $177 million in crypto over two years and changed payment bank details 647 times in 14 months, cycling through 496 unique accounts across the Americas.

"That qualifies as suspicious," Stefan Cassella, a former federal prosecutor, commented for FT. "It looks like someone is acting as a money-transmitting business."

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The FT dropped the bombshell months after the SEC abandoned its lawsuit against Binance, which accused the exchange of artificially inflating trading volumes. Other allegations included the diversion of customer funds and misleading investors about the exchange’s surveillance controls.

Concerns over Binance’s operations were also raised this year by France, which launched a criminal investigation in early 2025.

Physically Impossible Activity Went Undetected

The account tied to the Venezuelan bank employee showed access from Caracas at 3:56 p.m. on February 24, 2025, then from Osaka, Japan, at 1:30 a.m. the next day, a physically impossible sequence.

All 13 accounts received funds totaling $29 million in Tether stablecoin from accounts later frozen by Israel under anti-terrorism law. Nearly all came from four crypto wallets linked to Tawfiq Al-Law, a Syrian accused of moving money for Hizbollah and Iran-backed Houthis. Israel seized the accounts in May 2023, and the US Treasury sanctioned Al-Law in March 2024.

Binance told the FT it "maintains strict compliance controls and a zero-tolerance approach to illicit activity" with "robust systems in place to flag and investigate suspicious transactions."

Trump Pardon Complicates Oversight

President Donald Trump pardoned Binance founder Changpeng Zhao in October for violating US anti-money laundering laws. The Trump family subsequently expanded business ties with the exchange this month through World Liberty Financial, announcing a "massive expansion" of its USD1 stablecoin on Binance.

The Justice Department and Treasury appointed two independent monitors in May 2024 to oversee Binance's compliance. Many transactions the FT reviewed occurred after monitoring began.

Jessica Davis, a former Canadian intelligence official, said Trump's pardon loosened the compliance environment. "Previously, the incentive was: keep your CEO out of jail," she commented to FT.

"Yes, there are fines, but part of the problem is that we're just talking about so much money being made on these platforms that even a billion-dollar fine becomes fairly meaningless."

Source: Finance Magnates