Crypto firm Binance processed $7.8 billion in Iranian funds
$7.8 billion allegedly flowed between Iran's largest crypto exchange, Nobitex, and crypto powerhouse Binance
By News Desk - November 04 2022

(Photo Credit: Getty Images)

On 4 November, Crypto powerhouse Binance processed Iranian transactions at an estimated $7.8 billion since 2018, despite the US  “maximum pressure” sanctions campaign to cut them off from the global financial system, according to a Reuters report.

The $7.8 billion flowed between Iran’s largest crypto exchange, Nobitex, and Binance, according to US blockchain researcher Chainalysis.

Three-quarters of the Iranian funds were processed via Binance’s Tron cryptocurrency, which gives users anonymity. Nobitex encouraged clients to use Tron to trade anonymously without “endangering assets due to sanctions.”

The US Justice Department is approaching an investigation into potential money-laundering violations by Binance, a company valued at $1 trillion that dominates the crypto industry with over 120 million users.

Dealing with Iran is a risk for the company and can result in several consequences, given that the US prohibited Binance from doing this.

Iran placed its first official import order using cryptocurrency in August 2022. This move follows the steps of other nations under unilateral sanctions imposed by the US, and will allow the Islamic Republic of Iran to circumvent the US blockade that has crippled the economies of several countries.

Alireza Peymanpak, Deputy Minister of Industry, Mine and Trade and President of the Iran Trade Promotion Organization (TPO) reported an import order of $10 million. However, he added that Iran will be expanding the employment of cryptocurrencies in its foreign trade.

The $10 million order is Iran’s first step towards trade with digital assets that bypass the financial system that is primarily dominated by the US dollar.

Since May 2018, when the US decided to unilaterally abandon the Joint Comprehensive Plan of Action (JCPOA), the Islamic Republic has suffered an almost total economic blockade, including bans on the imports, banking, and shipping sectors.

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