Forbes: Former Binance Investigator Tells IRS Management Ignored Probe Into Iran-Related Accounts
According to Forbes, a previously undisclosed search warrant shows that a former senior financial crimes investigator at Binance said during questioning by the U.S. Internal Revenue Service (IRS) in May this year that Binance management had deliberately ignored calls to conduct an internal investigation, code-named “Operation Loclock,” into about 2,000 accounts suspected of being used by people in Iran and involving about $1.2 billion in fund flows. The investigator had previously been suspended, along with several colleagues, and later left the company after investigating two accounts suspected of transferring funds to Iran in violation of U.S. sanctions.
The investigator’s lawyer said his client had received a subpoena to testify before a federal grand jury in Washington, D.C. Dugan Bliss, Binance’s deputy general counsel, told Forbes that the company fully cooperates with law enforcement and denied that management ignored or failed to respond to Iran-related compliance concerns; the company said the investigators in question were dismissed in accordance with company policy for violating its data privacy policy, and that the account investigation was never closed. No charges have been filed in the investigation at present.
Original source:
Title: Fired Binance Investigator Tells IRS Crypto Giant Ignored Calls For Iran Probe Publisher: Forbes Publication date: 2026-11-09 URL: https://www.forbes.com/sites/thomasbrewster/2026/11/09/binance-fired-investigator-talking-to-the-irs-in-iran-investigation/ Nature of source: media report (based on search warrant and interviews) Verification status: full text actually read in this instance, verification date 2026-11-09, no access restrictions Supporting content: supports that the former investigator said to the IRS in May that Operation Loclock involved about 2,000 accounts and about $1.2 billion, that he left after being suspended, the grand jury subpoena, Binance’s response that it did not violate sanctions and that the investigators were dismissed under the data privacy policy, that the investigation was never closed, and that there are currently no charges
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Forbes reported the former investigator’s statements to the IRS based on a search warrant for his MacBook. The investigator said that before leaving the company, he was suspended for investigating two accounts suspected of transferring funds to Iran. The search warrant shows that he told the IRS Binance had deliberately ignored calls for an internal investigation, code-named “Operation Loclock,” into about 2,000 Iran-related accounts that moved about $1.2 billion on the platform.
The report places this event against the backdrop of Binance and founder Changpeng Zhao’s 2023 guilty plea and $4 billion fine for failing to stop transactions with sanctioned countries including Iran. Zhao later received a presidential pardon. The report also mentions that the Justice Department and the IRS have issued multiple subpoenas and search warrants to some former employees and to Binance itself, with the investigation extending to customers such as Hexa Whale and Blessed Trust, which were alleged to be linked to wallets associated with the Islamic Revolutionary Guard Corps in Iran.
Binance denied that management ignored compliance concerns, saying its compliance team identified, investigated and took appropriate action, and cooperated with law enforcement. The company said the investigators were fired for violating data privacy policy, not for what the investigation found, and that the relevant account investigation was never closed. Lawyer Gregory Bernstein, representing the former investigator, said there is substantial evidence that Binance helped evade sanctions. All of the above is currently one side’s account and the company’s response, and no formal charges have been filed. Potential follow-up developments include whether the grand jury takes further action, the outcome of execution of the search warrants, and whether the Justice Department brings any charges regarding the relevant accounts.
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At present, there is only the former employee’s statement to the IRS and the company’s denial, and no charges have been filed in the investigation.
The event is linked to Binance’s earlier guilty plea over sanctions compliance issues, but the conclusions of the current account investigation still await confirmation through law enforcement procedures.