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Binance filed a defamation lawsuit against Dow Jones — the publisher of The Wall Street Journal — on the same day the paper ran a story reporting that the U.S. Justice Department is investigating whether Iran used the world’s largest cryptocurrency exchange to transfer funds in violation of United States sanctions.
Binance Takes WSJ To Court
Amid ongoing scrutiny over its regulatory status, the crypto’s biggest exchange has filed a defamation lawsuit against The Wall Street Journal.
In its complaint filed in the U.S. District Court for the Southern District of New York, Binance alleged that the newspaper’s Feb. 23 article contained “false and defamatory statements” about the company’s compliance practices and how it handled transactions linked to Iran-backed groups, including Yemen’s Houthi militants.
The Journal reported that Binance had fired employees who flagged transactions involving sanctioned entities, an allegation the exchange denies. According to the lawsuit, Binance did not terminate staff for raising compliance concerns; rather, the departures were tied to alleged violations of the company’s internal data protection policies.
“Binance categorically did not dismantle any compliance investigation,” a representative for the exchange said in a statement. “The WSJ continues to report the same falsities. As a result, we have filed a lawsuit against the Wall Street Journal for defamation.”
 
The representative added that Binance’s internal investigation is ongoing and has uncovered complex financial activity spanning Asia, the Middle East, and other regions.
“The truth is that Binance’s investigation continued and uncovered a sophisticated, multi-jurisdictional pattern of financial activity spanning Asia, the Middle East, and beyond. Binance mapped this complex activity, offboarded the relevant user accounts, and reported to law enforcement,” the representative said.
Binance Seeks Damages And Legal Fees
Binance said it was not aware of any Justice Department investigation and said it continued to cooperate with regulators and law enforcement. “As always, we are collaborating with regulators and law enforcement to investigate the facts,” the exchange said.
Binance has requested a jury trial as part of its lawsuit, seeking compensatory damages and coverage of legal fees, though the exact amount has not been disclosed.
The lawsuit and ongoing investigation thrust Binance back into the legal spotlight.
Back in 2023, Binance pleaded guilty to violating U.S. anti-money laundering and sanctions laws, agreeing to pay $4.3 billion in penalties. Founder and former CEO Changpeng “CZ” Zhao also pleaded guilty to a related charge, served a four-month prison sentence, and was ultimately pardoned by US President Donald Trump in October 2025.
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