Cryptocurrency exchange Binance participated in the transaction of funds worth up to $8bn by Iranians in 2018, according to Reuters.
According to the publication, this was done despite sanctions placed on the country by the US, which aimed to limit Iran’s exposure to financial markets, and cut its own system completely from the rest of the world.
The funds were transacted between Binance and Iran’s own cryptocurrency exchange, Nobitex.
This has been confirmed in a report by Chainalysis, which Reuters cited. The analytics firm confirms that Nobitex has been used to skirt sanctions.
The funds that moved through Binance mostly had to do with the Tron token, which is a fairly small token, and it has the option to be used anonymously, hence why the transactions only became evident four years after the fact.
There have been rumors regardless with Binance suspected of assisting Iran’s exchange in some capacity before, but without any actual proof.
However, this is the first actual confirmation of this being indeed the case. This could jeopardize Binance’s own positions in the US.
The company recently helped Elon Musk buy out Twitter and has been put on the special advisory council created by the tech mogul to oversee the deep reforms in the social media platform that began instantly as Musk closed the deal.
Should the US Department of Justice decide, it could see Binance’s actions as requiring further enforcement action.
Reuters reported in July that Binance could have been a popular exchange in Iran even before the Chainalysis report, and said that the company was aware that Iranians saw Binance as a trusted and reliable platform.
However, Binance has vehemently denied any and all allegations that it had knowledge of the matter and assured that it is following international rules to the letter.