 ▲ Binance, The Wall Street Journal, lawsuit/AI-generated image |
Global cryptocurrency exchange Binance has filed a defamation lawsuit against The Wall Street Journal, alleging that the publication reported false information about its sanctions compliance program, and has begun legal action.
According to crypto media outlet U.Today on March 11 (local time), Binance submitted a complaint to the U.S. District Court for the Southern District of New York, claiming that a Wall Street Journal article published on February 23 seriously damaged the company’s reputation and disseminated false information. The article alleged that Binance assisted Iranian-linked entities in evading sanctions and dismissed internal investigators. Binance asserts that the article contains at least 11 clear factual inaccuracies and that the outlet ignored the company’s efforts to correct them.
The Wall Street Journal reported that Binance allowed approximately $1 billion in cryptocurrency transactions linked to an Iran-connected terror financing network. In response, Binance strongly refuted the claims, stating that the report stemmed from a fundamental misunderstanding of blockchain data. The company emphasized that the article confused indirect exposure—where funds move through multiple wallets—with direct violations, and stressed that it operates strict know-your-customer procedures that prohibit Iranian users.
Through the lawsuit, Binance revealed that a 27-page rebuttal and fact-checking request it had provided to the Wall Street Journal prior to publication were entirely disregarded. Co-CEO Richard Teng expressed strong regret on social media, stating that the report was written with the intent to undermine Binance’s compliance efforts. Binance maintains that the lawsuit is a necessary step to hold click-driven reporting accountable and to restore user trust.
Dugan Bliss, Binance’s Global Head of Litigation, described the legal action as a legitimate defense mechanism to address reputational damage and business losses caused by inaccurate reporting. Binance stated that it has deployed more than 1,500 professionals—approximately a quarter of its total workforce—to compliance and risk management departments and has invested hundreds of millions of dollars in system enhancements. The company plans to demonstrate in court that it meets international standards through institutional-grade security systems and rigorous internal audits.
This legal dispute, arising as the cryptocurrency market enters the institutional mainstream, sharply illustrates the tension between responsible media reporting and corporate transparency obligations. Binance argues that the Wall Street Journal’s report not only harms a single company’s reputation but also undermines trust in the broader industry. Depending on the outcome of the lawsuit, significant changes may be inevitable in both media coverage of cryptocurrencies and exchanges’ regulatory response strategies.
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