Binance Documents Reveal ‘Chinese Nexus’ In $1.7B Crypto Transfers To Sanctioned Iran Accounts: Report

Internal investigation documents cited by Fortune indicate that more than $1.7 billion flowed through wallets linked to Binance accounts into wallets tied to U.S.-designated terrorist groups.

• The sanctioned accounts themselves did not sit on Binance, but received funds from wallets on the cryptocurrency exchange.
• The report described the series of flows as part of a “Chinese Nexus” that sent USDC to VIP accounts on Binance, which then transferred the funds to the sanctioned Iranian wallets.
• Two VIP Binance accounts, one belonging to a 79-year-old Chinese man and the other to a 38-year-old Chinese woman, reportedly accessed the exchange from the same device.
• Binance stated none of the wallets were sanctioned by global law enforcement agencies at the time the transactions occurred, so the transfers did not trigger alerts at their end.

More than $1.7 billion reportedly flowed into a crypto wallet linked to Binance accounts before portions of the funds were routed to Iran’s largest crypto exchange, Nobitex, and wallets associated with U.S.-designated terrorist groups, including the Islamic Revolutionary Guard Corps and the Houthis, according to internal investigation documents. 

The records indicated that a 79-year-old Chinese VIP account holder indirectly transferred more than $439 million to the wallet, according to a Fortune report. The wallet, dubbed Entity A, also received $200 million from a 38-year-old Chinese woman. 

Investigators Identify ‘Chinese Nexus’ In Binance Wallet Flows

The Binance documents referred to this interlinkage of wallets as a “Chinese Nexus” because the investigation revealed that both accounts likely accessed Binance from the same device. It also found that both accounts received funds from Blessed Trust, a Hong Kong-based firm that helps companies convert crypto funds to fiat. 

Of the $1.2 billion that went to Entity A from Blessed Trust, nearly half came from the two Binance VIP users. The two VIP accounts also shared a device with Blessed Services, a business tied to Blessed Trust, which sat between crypto flows to Entity A.

Binance stated none of the wallets were sanctioned by global law enforcement agencies at the time the transactions occurred, so the transfers did not trigger alerts at their end.

Hong Kong Trading Firm Sent $500 Million To Entity A

The “Chinese Nexus” also included one more participant, a Hong Kong-based company called Hexa Whale Trading Limited, which operated on Binance, and sent around $500 million to Entity A. By the time Binance investigators discovered the Hexa Whale activity, other members of the company’s compliance team had already offboarded the account. 

Moreover, $1.1 billion of funds sent to sanctioned Iranian accounts was done using the USDC (USDC) stablecoin issued by Circle Internet (CRCL). The firm told Fortune that it had terminated Blessed Trust as a customer in 2025.

Should Binance Worry?

Binance has already faced significant regulatory consequences tied to sanctions compliance in 2023. The exchange reached a $4.3 billion settlement with the U.S. government over failures related to anti-money laundering controls and sanctions enforcement. As a part of the settlement, Binance cofounder Changpeng Zhao stepped down as chief executive and later served four months in federal prison.

Binance’s native token BNB (BNB) gained 2.8% in the last 24 hours, underperforming Bitcoin (BTC) as the overall cryptocurrency market rallied to cross the $2.5 trillion mark. On Stocktwits, retail sentiment around BNB trended in ‘neutral’ territory over the past day.

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