Binance has threatened legal action against The Wall Street Journal (WSJ), accusing the publication of defamation. The exchange demanded corrections and retraction of a recent investigation into its sanctions compliance program.
CEO Richard Teng confirmed the move publicly on February 24. He stated that the exchange had formally challenged the report and sent a legal letter outlining its objections.
The letter, sent by law firm Withers Bergman LLP, accuses WSJ of publishing false and misleading claims that damaged Binance’s reputation.
Binance argues the article misrepresented its compliance actions and failed to include the company’s responses provided before publication.
Specifically, Binance denies allegations that it violated Iranian sanctions or suppressed internal investigations. Its lawyers said the report falsely suggested the exchange engaged in illegal conduct and retaliated against employees who flagged compliance risks.
The letter also accused WSJ of failing to remain fair and impartial.
In parallel, Binance published a blog defending its compliance program and disputing the investigation’s conclusions.
The exchange said it maintains more than 1,500 compliance-related personnel and invests heavily in monitoring, sanctions screening, and financial crime detection.
It also stated that sanctions-related exposure fell sharply between 2024 and 2025 and that any accounts linked to potential risks were investigated and offboarded.
Instead, it said some employees were dismissed after internal reviews found breaches of confidentiality and data handling policies.
The dispute follows a WSJ investigation that alleged Binance processed over $1 billion in crypto transactions linked to Iranian entities, including accounts connected to sanctioned organizations.
The report also claimed internal investigators flagged the activity and that some were later dismissed, raising concerns about enforcement of sanctions controls.