The Justice Department is investigating Binance for its role in facilitating Iran's evasion of U.S. sanctions through cryptocurrency transactions. The probe centers on more than $1 billion that flowed through the platform to networks funding Iran-backed terror groups, including Yemen's Houthi militants, according to company documents and sources familiar with the matter.

This investigation follows Binance's internal review that uncovered the suspicious transactions before being dismantled. The world's largest crypto exchange now faces heightened scrutiny over its compliance systems and potential violations of international sanctions regimes. The case highlights growing concerns about cryptocurrency platforms being exploited for illicit financial activities.

Binance has previously faced regulatory challenges in multiple jurisdictions, including a $4.3 billion settlement with U.S. authorities in 2023 over anti-money laundering violations. The current probe could expose the exchange to additional penalties and further damage its reputation in the regulatory landscape. The outcome may have significant implications for the broader cryptocurrency industry's approach to sanctions compliance.