Updated Changpeng Zhao has pushed back against a report alleging that Binance fired senior investigators who uncovered potential sanctions violations.
CZ Dismisses Report on Sanctions Probe Firings as ‘Self-Contradicting’
13 February 2026 - 22:55 CET
By Ana Pereira
Binance’s co-founder and former CEO returned to the public debate on 13 Feb to defend the company’s compliance team after a Fortune report raised concerns about internal dismissals.
"I don't know any details or who, but just reading the article, it's self contradicting," Zhao wrote on X. He added that the largest crypto exchange operator runs every transaction through "multiple 3rd party AML tools."
Zhao, who is also known by his initials CZ and stepped down as CEO in 2023, argued that if alleged violations had occurred, the same third-party tools used by law enforcement would also have flagged them.
What the report alleges
The comments followed a report by Fortune claiming that Binance dismissed at least five compliance investigators after they disclosed internal findings tied to possible Iranian sanctions violations.
According to the report, members of Binance’s compliance team identified transactions totaling more than $1bn between March 2024 and August 2025 that were allegedly linked to entities tied to Iran. The transfers reportedly involved the stablecoin Tether on the Tron blockchain.
Citing anonymous sources, the report added that it could not determine the exact reason for the firings. Beyond the investigators, the article said at least four additional senior compliance staff had left or been pushed out in recent months.
In comments to Sandmark, a Binance spokesperson said the exchange "cannot comment on individual employee cases," but noted that "employees who breach company policy are subject to dismissal."
Binance added that its core compliance teams remain in place and that it continues to invest in detecting and preventing illicit activity. "We continue to work closely with law enforcement partners to protect our users and the wider ecosystem," said the spokesperson.
The company later widely distributed a written statement about the Fortune article: "While we respect the role of investigative journalism, the article contains gross material inaccuracies and misleading characterizations that require clarification," Binance said on 15 Feb.
Compliance history and monitorship
The allegations land against the backdrop of Binance’s 2023 settlement with US authorities. That year, the exchange pleaded guilty to violating anti-money laundering, know-your-customer and sanctions laws, agreeing to pay $4.3bn in penalties.
Zhao also pleaded guilty to failing to implement proper oversight and later served a four-month prison sentence before receiving a presidential pardon in 2025.
As part of the settlement, Binance agreed to enhance compliance measures and government-imposed monitoring. As a result, the company expanded its compliance staff and hired high-profile former prosecutors and regulators.
