He Yi says Binance will cooperate, strengthen compliance after firings
Binance co-founder He Yi responded to reports that employees who identified Iran-related transactions were dismissed, saying the exchange will work with law enforcement and reinforce its compliance program. The company’s position, as described, centers on expanding resources and capabilities in sanctions and AML controls following the internal personnel changes.
The controversy focuses on alleged Iran-linked transfers routed via USDT on Tron and the subsequent departures of some investigators. While specific claims are disputed, Binance leadership has emphasized continued cooperation and upgrades to internal systems.
Why it matters for sanctions controls, OFAC/DOJ scrutiny, and users
The stakes are elevated by Binance’s 2023 settlement and long-term oversight obligations; according to the U.S. Treasury, the company paid $4.3 billion and admitted past AML and sanctions-compliance failures under a monitorship framework. In this context, staffing moves tied to sanctions alerts can draw attention from OFAC and the DOJ, particularly around escalation, independence, and documentation.
Sanctions compliance for stablecoin flows such as USDT on Tron typically involves wallet screening, blockchain analytics, rule-based and risk-based reviews, and formal escalation pathways. Monitorships often test whether findings are preserved, triaged, and reported with audit trails, and whether whistleblower protections function as designed.
Immediate impact: internal controls, monitorship optics, and user risk signals
The immediate risk is governance-related: dismissals following high-stakes alerts may raise questions about the durability of internal controls under monitorship. Even if disputed, such optics can affect regulatory confidence as well as institutional counterparties’ risk assessments.
Users and partners may track official statements, the pace of compliance hiring, and tooling changes as signals of posture. Clear articulation of escalation thresholds and independent review mechanisms would typically be assessed by external monitors in subsequent reviews.
For market context only, at the time of this writing Coinbase Global, Inc. (COIN) closed at 164.32 and traded 166.00 after hours, based on data from NasdaqGS. These figures do not imply any investment view and are unrelated to the merits of the allegations.
Allegations, Binance responses, and what regulators may assess
Allegations: $1B Iran-linked USDT on Tron; investigator firings timeline
As reported by Fortune, internal investigators identified more than $1 billion in transactions tied to Iran-linked entities routed via USDT on the Tron blockchain between March 2024 and August 2025, after which at least five investigators departed beginning in late 2025. The report says the findings were escalated internally before those departures occurred.
Responses: He Yi’s cooperation pledge; CZ’s pushback; likely assessment areas
As reported by ChainCatcher, He Yi said Binance will increase investment in compliance, recruit specialized professionals, and continue working with law enforcement to enhance controls. She framed compliance as a continual upgrade process aligned with regulatory expectations and operational realities.
“Will continue to cooperate with law enforcement and strengthen the compliance system,” said He Yi, co-founder and co-CEO of Binance.
As reported by The Block, founder Changpeng Zhao disputed key claims, describing the report as “self-contradictory” and defending Binance’s use of established third‑party AML tools. He questioned whether any dismissals reflected performance issues rather than retaliation for raising concerns.
Regulators may assess whether escalation channels, investigator independence, and documentation align with post-settlement obligations. They could also review how on-chain screening decisions are recorded and whether whistleblower protections are functioning effectively.
FAQ about Binance compliance
Did Binance fire compliance investigators who raised Iran-related red flags, and what reasons have been reported or stated?
Allegations claim investigators who flagged Iran-linked activity were dismissed; Binance disputes aspects of the narrative, and reasons remain contested.
How have He Yi and CZ responded to the allegations, and what concrete compliance measures did they cite?
He Yi emphasized cooperation, hiring, and system upgrades, while CZ rejected key claims and cited third‑party AML tooling use.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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