WSJ: Iranian financier Babak Zanjani linked to 21 Binance accounts trading approximately $850 million under US sanctions
According to a report by The Wall Street Journal citing an internal Binance report, 21 personal and corporate accounts associated with Iranian financier Babak Zanjani, who is under US sanctions, have traded approximately $850 million on Binance, with at least $67 million flowing from two accounts to wallets linked to the Iranian Revolutionary Guard Corps (IRGC).
The report shows that Sukhrob Oimakhmadov, classified as a "high-value customer" by Binance, received over $10 million through accounts, with sources including digital wallets later identified as IRGC-linked, and relevant accounts logged in multiple times from Tehran.
The corporate account of the crypto platform Zedcex linked to Zanjani has a total trading volume close to $830 million, with about $56 million withdrawn to related wallets. The network also involves other associated accounts, some of which have drawn attention from US and other national law enforcement agencies.
In response to the report, Binance stated that it identified the related activities months ago and took action, restricting trading on all accounts associated with sanctions violations, which were subsequently phased out. Binance emphasized that equating total trading volume with actual funds flowing to the IRGC is misleading.
Binance stated it is continuously enhancing compliance controls and cooperating with global law enforcement investigations, while noting that it has taken measures to address historical approval requirements and execution delays. The US Treasury had previously imposed sanctions on Zanjani and related entities and individuals.
The total trading volume listed in the report does not imply that all funds flowed to the IRGC; the flow of funds and account associations need to be viewed distinctly. The internal report was submitted to the UAE financial intelligence unit in April this year.
The flow of funds is concentrated on being routed through multiple accounts before reaching marked wallets, benefiting from the network's financial maneuvering capabilities, while placing pressure on the exchange's compliance screening and customer admission standards.
Source: Public information
ABAB AI Insight
Babak Zanjani has long been involved in evading Iranian sanctions, initially assisting in the repatriation of oil revenues through traditional financial channels, later shifting to the crypto asset network. The US Treasury has imposed sanctions on him and associated entities. After reaching a settlement with US regulators in 2023, Binance entered a period of ongoing monitoring, and its internal compliance system had flagged related account activities multiple times.
The network conducted transactions through 21 accounts, with some funds further directed to wallets marked as IRGC-related by external agencies. After identification, Binance restricted trading on these accounts and phased them out, while also submitting reports to the UAE financial intelligence unit. Resource mobilization focused on post-event handling at the account level and sharing of law enforcement information, rather than a comprehensive retrospective on completed transactions.
Similar patterns can be seen in how other major exchanges have handled exposure to sanction evasion networks, as some platforms have faced investigations by the US Treasury or Justice Department for processing funds from sanctioned regions or entities. Currently, crypto exchanges are transitioning from a rapid expansion phase with lax KYC to mandatory screening against sanction lists, geographic monitoring, and multi-national intelligence sharing.
This essentially reflects regulatory changes: exchanges, as cross-border fund transfer nodes, face a time lag between their internal risk flags and external law enforcement actions, creating a window for fund mobility. The mechanism is that total trading volume includes buying, selling, and deposits, which does not equate to net inflows to specific entities; once internal reports are made public, the focus shifts to whether exchanges timely cut off channels before and after sanctions take effect, pushing the industry from post-event phase-outs to preemptively stricter screening of related parties, devices, and login locations.
ABAB News · Cognitive Laws
- Total trading volume is traffic; net flow is responsibility.
- High-value customers are labels, also delays.
- Once internal reports are made public, the window closes.