Binance Reports 97% Drop in Sanctioned Transaction Exposure Levels

Binance says it has sharply reduced its exposure to sanctioned entities. It is pushing back against fresh compliance criticism. In a recent update, the exchange reported that sanctioned exposure now stands at just 0.009% of total trading volume. The company says this marks roughly a 97% decline since early 2024. 

The announcement comes days after a Fortune investigation questioned Binance’s controls around Iran-linked flows. Meanwhile, founder Changpeng “CZ” Zhao amplified the message on X. He argued the platform relies on data rather than what he called negative narratives.

Binance Highlights Compliance Progress

According to Binance, the biggest improvement came from cutting direct exposure to four major Iranian crypto exchanges. The company said flows fell more than 97%. It is dropping from $4.19 million in January 2024 to about $110K by January 2026. The exchange also shared broader metrics. It claims that overall sanctions exposure dropped. From roughly 0.28% in early 2024 to just 0.009% by mid 2025. 

📢LATEST: BINANCE CUTS SANCTIONS EXPOSURE BY 97%@Binance says exposure to sanctioned entities has dropped to 0.009% of total volume.

The exchange claims a 97% reduction since January 2024.

Direct exposure to four top Iranian exchanges fell over 97%.

Figures dropped from… pic.twitter.com/ZhmzMJF15W

— BSCN (@BSCNews) February 23, 2026

Binance added that it now employs more than 1,500 compliance staff. That represents about a quarter of its workforce. Officials said the platform continues to invest heavily in monitoring tools and screening systems. Binance also noted it holds licenses in around 20 jurisdictions. The company argues these steps place its compliance program ahead of many global peers. Although some of the analytics methods cited were not independently verified.

Fortune Report Raised Fresh Questions

The update follows a February 13 Fortune investigation. That casts doubt on Binance’s controls. The report alleged that more than $1 billion in USDT transactions were linked to Iranian entities. That flowed through the platform between March 2024 and August 2025. Fortune also reported that several internal investigators were dismissed after raising concerns. 

The article relied on anonymous sources and internal materials. Which quickly fueled debate across the crypto industry. The claims revived scrutiny tied to Binance’s 2023 settlement with U.S. authorities. Where the exchange paid a $4.3 billion penalty over earlier compliance failures. Since then, the company has repeatedly said it is rebuilding its regulatory posture.

Binance and CZ Push Back

Binance strongly rejected the Fortune claims. The company said no employees were fired for raising sanctions concerns and called the report misleading. Executives added that internal reviews. Along with outside legal checks, found no evidence of violations tied to the alleged activity. CZ echoed that stance publicly. He said some media narratives came from disgruntled former staff. He insisted Binance runs what he called the best compliance program in the industry. 

Some media uses negative narratives (from fired employees).

Binance uses data.

Best compliance program in the industry, by far!https://t.co/oJUT0vWDjB https://t.co/hoT0qpE9ln

— CZ 🔶 BNB (@cz_binance) February 23, 2026

Still, reactions across social media remain mixed. Some users praised the transparency push. Others questioned whether exposure to permissionless blockchains can ever reach near zero. For now, Binance is framing the latest data as proof that its post settlement reforms are working. However, with regulators still watching closely. The debate around crypto compliance is far from settled.