Binance sues WSJ over report sparking government probes into exchange

In a bold move to combat increasing scrutiny, Binance has initiated a defamation lawsuit against The Wall Street Journal. The exchange aims to counter allegations stemming from a report that suggested it failed to identify $1.7 billion in transfers linked to organizations funding terrorism in Iran. The lawsuit follows an investigation by the Journal, which relied on insider interviews and internal document assessments. This report claimed that Binance had quietly halted its own inquiry into the illicit transfers and dismissed compliance staff who initially raised concerns. Binance alleges that the Journal’s findings are misleading, claiming it was falsely accused of retaliatory actions and asserting that the investigation was a 'sham' that ignored the company’s responses. Binance contends it has not ceased its investigation into the transfers, contrary to the Journal's claims. Currently, the cryptocurrency exchange is under investigation by the Justice and Treasury Departments for potential violations of U.S. sanctions laws. The situation has also caught the attention of Congress, with Senator Richard Blumenthal (D-Conn.) launching an inquiry. In a letter addressed to Binance CEO Richard Teng, Blumenthal referenced the Journal’s findings as well as other media reports, demanding explanations for the oversight of money laundering and the termination of compliance personnel. In its legal complaint filed on Wednesday, Binance warned that the ongoing probes might represent 'just the tip of the iceberg' if the narrative surrounding the situation is not rectified. The exchange emphasized the reputational damage it faces, especially given its efforts to enhance compliance measures following a settlement with the U.S. government in 2023, which included a $4.3 billion fine for violations of anti-money-laundering and sanctions laws. Binance's founder, Changpeng Zhao, also pleaded guilty to related charges during this settlement.