Binance Allowed Suspicious Terror-Linked Accounts Despite Billion Dollar Settlement
Finn's Take· TL;DR- Binance processed $1.7 billion through 13 suspicious accounts after settling $4.3 billion fine, including $144 million post-settlement agreement.
- Accounts showed terror-financing links, impossible login patterns from different continents minutes apart, and failed identity checks that persisted unaddressed.
- Exchange's promised compliance reforms appear cosmetic; continued violations could trigger additional $150 million penalty despite settlement commitments to implement real-time monitoring.
Massive Compliance Failures Exposed
Binance, the world's largest cryptocurrency exchange, allowed 13 suspicious accounts to handle $1.7 billion in transactions, with $144 million occurring after its November 2023 plea agreement with U.S. authorities. Internal files reviewed by the Financial Times reveal accounts with red flags - including connections to terror financing networks, impossible login patterns, and failed identity checks - kept trading well after the November 2023 plea agreement .
These revelations strike at the heart of Binance's credibility following a $4.3 billion fine after pleading guilty to anti-money laundering violations. The leaked documents span transactions from 2021 through this year , suggesting systematic oversight failures that persisted despite explicit promises to reform.
The scope of suspicious activity defies belief. One account registered to a 25-year-old Venezuelan woman received over $177 million in crypto over two years and changed payment bank details 647 times in 14 months, cycling through 496 unique accounts across the Americas . "That qualifies as suspicious," Stefan Cassella, a former federal prosecutor, commented .
Terror Finance Connections Uncovered
The investigation uncovered direct links to terrorist financing networks. All 13 accounts received a total of $29 million in the stablecoin USDT from accounts that were later frozen by Israel for links to terrorism financing. Most of the $29 million had come from four cryptocurrency wallets associated with Syrian Tawfiq Al-Law, who has been alleged to have transferred illicit funds for Hizbollah, the Houthis in Yemen and a company with links to the Assad regime .
Israel seized the accounts in May 2023, and the US Treasury sanctioned Al-Law in March 2024 . Yet Binance continued processing transactions from connected accounts even after these official actions.
The patterns revealed are textbook money laundering indicators. One account tied to a Venezuelan bank employee showed access from Caracas at 3:56 p.m. on February 24, 2025, then from Osaka, Japan, at 1:30 a.m. the next day, a physically impossible sequence . Such login anomalies typically trigger immediate account freezes at regulated financial institutions.
Settlement Promises Ring Hollow
Binance's 2023 settlement included specific commitments to prevent exactly these scenarios. Binance in its 2023 plea deal promised to implement real-time monitoring, enhanced due diligence and regular customer reviews to detect suspicious activities . The exchange also agreed to a five-year FinCEN monitorship and introduce stricter compliance measures .
Yet the leaked data suggests these reforms remained largely cosmetic. Some users moved eight- and nine-figure sums through their accounts in patterns that experts said would typically trigger freezes or investigations at regulated banks . The continued operation of flagged accounts after the settlement raises serious questions about regulatory enforcement effectiveness.
Binance told the FT it "maintains strict compliance controls and a zero-tolerance approach to illicit activity" with "robust systems in place to flag and investigate suspicious transactions" . However, failure to satisfy its obligations under the 2023 settlement could result in Binance facing further financial penalties, including a suspended penalty of $150 million .
Regulatory Reckoning Ahead
These revelations arrive at a politically sensitive moment. President Donald Trump pardoned Binance founder Changpeng Zhao in October for violating US anti-money laundering laws , raising questions about the administration's approach to cryptocurrency regulation. Meanwhile, concerns over Binance's operations were also raised this year by France, which launched a criminal investigation in early 2025 .
The crypto industry has long argued that existing regulations are sufficient if properly enforced. These findings suggest the opposite - that even after record-breaking fines and explicit compliance commitments, major exchanges continue facilitating illicit financial flows. The challenge facing regulators is no longer just writing rules, but ensuring they have teeth in an industry where billion-dollar penalties appear insufficient to drive meaningful change.