Binance, the world’s largest cryptocurrency exchange, is facing a new crisis after a recent investigation found that the company allowed billions to flow through suspicious accounts. This activity occurred even after Binance paid a massive $4.3 billion fine to settle U.S. criminal charges in late 2023.
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While the company promised to strengthen its security, leaked files show that money linked to terrorism and illegal businesses kept moving through the platform as recently as 2025.
Leaked Data Shows $1.7 Billion in High-Risk Activity
A deep dive into internal records by the Financial Times (FT) uncovered 13 accounts that handled a total of $1.7 billion in transactions. Even after Binance signed a plea agreement promising to follow the law, $144 million still moved through these flagged accounts.
Experts, including former federal prosecutors, say the activity was so obvious it looked like someone was running an illegal money-moving business in plain sight. For example, one account registered to a 25-year-old woman received over $177 million and changed her bank details 647 times in just 14 months, yet she was allowed to keep trading.
Major Security Gaps Allowed Money to Reach Dangerous Groups
The investigation highlighted major security gaps that allowed money to reach dangerous groups. One specific account showed a login from Caracas, Venezuela, and then another from Osaka, Japan, just a few hours later. This trip is physically impossible to make in such a short window.
More importantly, the report found that over $29 million came from digital wallets previously frozen by Israel for links to terrorism. These funds were connected to networks accused of moving money for groups like Hezbollah and Iran-backed militants, yet they continued to flow through Binance long after they were flagged by authorities.
Presidential Pardons and Political Ties Create New Risks
Oversight of the crypto giant has become more complicated following President Donald Trump’s decision to pardon Binance founder Changpeng Zhao (CZ) in October 2025. Since the pardon, the Trump family’s crypto venture, World Liberty Financial, has significantly expanded its business ties with Binance.
Furthermore, intelligence experts warn that this “welcoming political landscape” may be weakening the pressure on Binance to follow strict rules. One former official noted that billion-dollar fines become “fairly meaningless” when a company makes so much money that it can treat the penalty as just another cost of doing business.
Key Takeaway
The bottom line is that Binance is still struggling to stop illegal money. Despite paying billions in fines and being watched by government monitors, “red flags” were routinely ignored. Now, with a presidential pardon for its founder and new business deals with the Trump family, critics fear the exchange may feel it no longer needs to prioritize security over profits.
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