Crypto exchange Binance has sued the Wall Street Journal (WSJ) for defamation over an article alleging the exchange processed transactions linked to Iranian entities. This move comes just as the U.S. Department of Justice (DOJ) opened a probe into whether Iranian entities used the exchange to evade sanctions.
Binance Files Lawsuit Against WSJ For Defamation
In a blog post, Binance revealed that it has filed a lawsuit against the Wall Street Journal over “false and defamatory” reporting published on February 23, 2026. The WSJ had alleged in that article that the exchange had fired a staff member who flagged $1 billion moving to sanctioned Iranian entities.
“We filed to protect our reputation, correct the public record, and prevent misinformation from driving unnecessary confusion and distraction across the ecosystem,” the exchange said. It also affirmed that their compliance program is substantial and measurable in its outcomes, including a 96.8% reduction in sanctions-related exposure.
Binance filed the action in the Southern District of New York. In the court filing, the top crypto exchange categorically denied the Wall Street Journal’s allegations, calling them false. Meanwhile, the exchange is seeking “vindication of its reputation and recovery of damages” resulting from the article.
Furthermore, it noted that these false statements have only “metastasized” with multiple members of Congress adopting and repeating the article’s false statements as the basis for sending letters to them. At the same time, other government officials are demanding further inquiry into these allegations.
As CoinGape reported, Senator Richard Blumenthal sent a letter to the exchange probing the allegations made by the WSJ. Binance responded to the probe, stating that it had removed flagged entities after investigations tied to suspicious wallets.
According to a WSJ report, the DOJ is investigating Iran’s use of Binance to evade sanctions. The report revealed that these investigators are examining whether crypto assets that moved through the exchange helped channel funds linked to Iranian networks and proxy groups.
