Binance is once again facing tough questions after new details surfaced showing that billions of dollars moved through accounts flagged for suspicious activity — even after the exchange agreed to a landmark $4.3 billion settlement with U.S. authorities.
According to a report published by the Financial Times, internal Binance data reveals that 13 high-risk accounts processed a combined $1.7 billion in crypto transactions between 2021 and 2025. Notably, about $144 million of that volume flowed through the platform after Binance entered its guilty plea with the U.S. Department of Justice in November 2023.
The leaked files suggest that warning signs were repeatedly missed or ignored. One account, registered to someone living in a Venezuelan slum, reportedly moved around $93 million over four years. Some of those funds were traced back to a network later accused by U.S. authorities of secretly funneling money on behalf of Iran and Lebanon’s Hizbollah.
Another case raised even more eyebrows. An account tied to a 25-year-old Venezuelan woman received more than $177 million in crypto in just two years. During a 14-month period, the account changed its linked bank details an astonishing 647 times and cycled through nearly 500 different bank accounts spread across multiple countries — behavior experts say is typical of illicit money movement.
Former U.S. federal prosecutor Stefan Cassella told the Financial Times that the activity closely resembled an unlicensed money-transmitting operation, a serious violation under U.S. financial laws.
The investigation also uncovered login patterns that appeared nearly impossible. In one instance, an account linked to a Venezuelan bank employee was accessed in Caracas one afternoon, only to log in again from Osaka, Japan, early the next morning. Such activity points to potential account takeovers or coordinated misuse.
Several of the flagged accounts reportedly received Tether (USDT) from wallets that were later frozen by Israeli authorities under anti-terrorism laws. Many of those funds were connected to wallets associated with Tawfiq Al-Law, a Syrian national accused of moving money for Hizbollah and Iran-backed Houthi groups. Israel seized related accounts in 2023, and the U.S. Treasury sanctioned Al-Law in 2024.
Despite these findings, Binance told the Financial Times that it operates under strict compliance standards and enforces a zero-tolerance policy toward illicit activity. The company said it uses advanced monitoring systems to detect, flag, and investigate suspicious transactions.
The revelations arrive at a sensitive moment for Binance. Oversight of the exchange has become more complicated following a presidential pardon granted to founder Changpeng Zhao in October for anti-money laundering violations. Former intelligence officials cited by the newspaper said the pardon, along with expanding business links between the former president’s family and Binance-related entities, has raised concerns about regulatory accountability.
Adding to the scrutiny, much of the suspicious activity reportedly continued even after independent compliance monitors were installed in 2024 — a move meant to prevent exactly this kind of behavior.
As regulators worldwide keep a close eye on crypto’s largest exchange, the latest disclosures are likely to intensify calls for tougher enforcement and greater transparency across the industry.
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