The U.S. Department of Justice is examining whether Binance breached the 2023 settlement that resolved federal charges against the exchange, a review that could, if a violation is found, expose the company to renewed criminal prosecution. Tysen Duva, the head of the DOJ’s criminal division, confirmed in an interview this week that officials are reviewing Binance’s compliance with the agreement, according to a Bloomberg report published Oct. 9.
The compliance review runs in parallel with an existing forfeiture case in which federal prosecutors are seeking $61 million in cryptocurrency they say was laundered through Binance accounts as the proceeds of black-market Iranian oil sales. Duva declined to discuss specifics of the review and did not say Binance had violated the agreement. No wrongdoing has been alleged against Binance or its employees in the current probe, and the company said it continues to strengthen its compliance controls and cooperate with law enforcement.
What the Justice Department Is Reviewing
The 2023 agreement followed a years-long investigation into the world’s largest crypto exchange. Binance pleaded guilty to violating U.S. banking rules and agreed to pay a $4.3 billion penalty, on top of accepting increased compliance controls designed to prevent money laundering and sanctions evasion. Changpeng Zhao, its then-chief executive, also stepped down and separately pleaded guilty to violating U.S. anti-money-laundering laws.
Duva’s confirmation marks the first public signal from the criminal division that the settlement itself is under scrutiny. The review is assessing whether Binance’s conduct after the agreement stayed within its terms, which require the exchange to report misconduct and maintain its compliance program. Duva stopped short of any formal finding, leaving open whether the department will conclude the agreement was honored or breached.
The $61 Million Forfeiture Behind the Review
The settlement-compliance question overlaps with a forfeiture case filed in September. In that action, the U.S. Attorney’s Office for the Southern District of New York moved to seize roughly $61 million in cryptocurrency it described as proceeds of black-market sales of sanctioned Iranian crude oil. The complaint alleged that two Chinese companies, Blessed Trust and Hexa Whale, used trading accounts at Binance to launder oil-sale proceeds for the benefit of Iran’s government and its military, as detailed in BlockchainReporter’s earlier coverage of the forfeiture .
Federal prosecutors have said the broader scheme moved more than $1.5 billion in illicit oil proceeds through a network of addresses, of which the $61 million is the portion authorities are seeking to forfeit. The forfeiture complaint contains allegations that have not been proven in court.
What a Breach Finding Would Mean
If the department concludes Binance breached the 2023 agreement, it could move to reopen the criminal case, exposing the exchange to additional fines and renewed prosecution beyond the original $4.3 billion penalty. Bloomberg reported that a breach could carry billions of dollars in further penalties. The stakes sit alongside Binance’s continued expansion, which has included new compliance measures such as mandatory disclosures for Brazil’s international crypto transfers .
For now, the review is a probe, not a finding. Duva’s comments, and the absence of any allegation against Binance or its employees in the current matter, leave the outcome uncertain. What happens next depends on whether the criminal division determines the settlement terms were honored, a decision the department has not said when it expects to reach.
Frequently Asked Questions
In November 2023, Binance pleaded guilty to violating U.S. banking rules and agreed to pay a $4.3 billion penalty, along with accepting increased compliance controls. Changpeng Zhao stepped down as chief executive and separately pleaded guilty to anti-money-laundering law violations.
No. The DOJ’s criminal division said it is reviewing whether Binance breached the 2023 settlement, but no wrongdoing has been alleged against Binance or its employees in the current matter, and the review has not produced a finding.
Federal prosecutors in New York are seeking to seize about $61 million in cryptocurrency they allege is the proceeds of black-market Iranian oil sales laundered through Binance accounts by two Chinese companies. The complaint is an allegation and has not been proven in court.
A breach finding could let the Justice Department reopen the criminal case, exposing Binance to renewed prosecution and potentially billions of dollars in additional fines. The department has not said whether it will reach such a conclusion.