Binance’s post-settlement rehabilitation effort is back under scrutiny after a Financial Times investigation raised fresh questions about how effectively the exchange has tightened its controls since its 2023 agreement with US authorities.
Binance 'Rebuild' Stumbles as Leaked Data Exposes Compliance Gaps
22 December 2025 - 12:00 CET
By Matt Neill
The FT reported that large volumes of crypto continued to pass through accounts showing clear compliance red flags even after Binance agreed to pay $4.3bn and pleaded guilty to criminal charges related to anti-money laundering and sanctions failures.
Red flags
According to the FT, leaked internal data from a small set of high-risk accounts shows activity that compliance specialists would typically challenge at regulated financial institutions.
This included repeated failed identity checks, implausible login patterns across distant locations within hours, and transaction flows involving very large sums that appeared inconsistent with the account holders’ stated circumstances.
Notably, some of this activity allegedly occurred after November 2023, when Binance committed to tighter transaction monitoring and enhanced due diligence. For regulators and institutional partners, the concern is whether internal controls introduced after the settlement are being applied with sufficient consistency across the platform.
Binance’s 2023 plea deal was widely viewed as a turning point for the crypto industry, signalling that large exchanges would be held closer to traditional financial crime standards. The FT’s findings risk undermining that signal at a time when crypto firms are pushing deeper into institutional finance.
Banks, asset managers and payment providers increasingly interact with crypto infrastructure, but those relationships hinge on confidence in compliance and governance. Any perception that reforms remain uneven increases regulatory and reputational risk and makes engagement potentially much more costly.
Politics and enforcement credibility
The scrutiny also comes in a changed political climate. In October, President Donald Trump pardoned Binance founder Changpeng Zhao for his role in past violations.
While Zhao remains barred from executive roles, the pardon removed a powerful personal deterrent that had previously shaped enforcement dynamics.
Since the settlement, Binance has sought to reposition itself as a more conventional financial institution. It has scaled back some retail-facing activities, tightened control over public communications and highlighted investments in compliance.
The recent appointment of co-founder Yi He as co-chief executive underscores how closely the firm is balancing reform with continuity.
