Binance processed $1.7 billion in terror-linked trades after a $4.3 billion settlement, with 13 flagged accounts moving funds and about $144 million flowing through them after the plea deal. The disclosures raise questions about the effectiveness of Binance’s post-settlement reforms and ongoing AML controls. The revelations underscore broader implications for global crypto regulation and compliance.
The leaked files describe red flags such as links to terror-financing networks, failed identity verifications, and unusual login patterns, yet the accounts remained active through 2025. Some users logged in from locations suggesting VPN use or shared access, while others repeatedly failed basic identity checks. The Financial Times investigation notes that continued activity undermined the reforms Binance had touted.
Binance says it has invested in AI-driven monitoring and expanded its compliance staff since the settlement, and argues many flagged accounts were eventually addressed. Regulators worldwide, from the EU to Asia, may tighten AML and KYC rules as a result of the leaks. The disclosures underscore ongoing scrutiny of crypto exchanges’ ability to curb illicit finance.
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