Binance Sues WSJ Over Defamatory Iran Sanctions Allegations

By: crypto insight|2026/03/12 14:00:00

Key Takeaways:

Binance has filed a defamation lawsuit against the Wall Street Journal in New York for alleged false reporting on Iran sanction violations.
The WSJ claimed that Binance possibly processed $1.7 billion linked to Iranian entities, sparking regulatory investigations.
Binance asserts its compliance efforts, claiming a 96.8% reduction in sanctions risks and highlighting the firing of staff for data policy breaches, not for uncovering wrongdoing.
This legal move signifies Binance’s pushback against media narratives it considers false and harmful to its business and reputation.
The industry is closely monitoring this situation, reflecting broader challenges in crypto-regulatory relations.

WEEX Crypto News, 2026-03-12 05:12:25

Binance’s Legal Action Against WSJ

Binance has taken a bold step by filing a defamation lawsuit against the Wall Street Journal. The complaint, lodged in the Southern District of New York, accuses the WSJ of publishing inaccurate information regarding Binance’s compliance practices related to Iran sanctions. Specifically, Binance disputes a report alleging it knowingly processed over $1 billion for sanctioned Iranian entities. This filing came on the heels of a market reaction that saw BNB prices dip, reflecting investor concerns over potential legal implications for the exchange.

Breaking Down the Allegations

The WSJ published an article claiming internal disorder within Binance, following alleged transactions of $1.7 billion to Iranian entities, facilitated by a Hong Kong-based converter named “Blessed Trust.” The report suggested that Binance proceeded with these transactions despite warnings from compliance staff, supposedly resulting in their dismissal. This claim has incited regulatory interest, with U.S. Senator Richard Blumenthal pressing for an investigation into Binance’s operations.

Binance’s Comprehensive Defense

Binance maintains it has been wrongfully accused, citing what they describe as a willful ignorance of facts by the WSJ. The exchange shared that it provided 19 responses and addressed 27 specific inquiries from the WSJ prior to the report’s publication, none of which were reflected in the final piece. Binance’s CEO, Richard Teng, disputed the assertions by clarifying that staff were terminated for breaching data policy rather than for whistleblowing.

In its defense, Binance highlighted significant strides in compliance, reporting a 96.8% cut in sanctions exposure risks due to enhanced protocols. Furthermore, Binance pointed out that over 1,500 employees, a substantial portion of its workforce, are dedicated to compliance. It also noted that the “Blessed Trust” account was closed and reported to law enforcement in 2025, contrary to the WSJ’s timeline of ongoing activity.

-- Price

Implications for Binance and Media Relations

The lawsuit seeks not only compensatory but also punitive damages, arguing the WSJ’s narrative has inflicted irremediable damage. This legal pursuit follows Binance’s recent exoneration from a separate lawsuit alleging terrorist financing, which was dismissed due to a lack of substantive evidence. Through this aggressive legal approach, Binance underscores its zero-tolerance for what it considers blatant misrepresentations impacting its current operations.

The case is watched closely as it tests media reporting standards, particularly the notion of “actual malice,” which is pivotal in defamation suits involving public figures or entities. Binance’s settlement with the DOJ in 2023 for $4.3 billion over past misconduct remains a backdrop for current regulatory scrutiny yet helps reinforce its current compliance narrative.

As the WSJ prepares its response, the focus remains on whether the initial regulatory inquiries, spurred by the article, will gather momentum in the absence of supporting media narratives. The developments in this case could shape the relationship between the crypto industry and media, highlighting the importance of accurate and responsible reporting.

FAQs on Binance’s Lawsuit Against WSJ

What motivated Binance to sue the Wall Street Journal?

Binance filed the lawsuit in response to allegations made by the WSJ suggesting that Binance facilitated transactions with sanctioned Iranian entities. Binance claims these allegations are false and defame the company, leading to reputational damage and investor concern.

How has Binance responded to the WSJ’s allegations?

Binance has challenged the WSJ’s report by asserting that it provided comprehensive and factual responses beforehand, which were ignored. The exchange emphasizes its strong compliance framework and highlights the followed protocol with the “Blessed Trust” account.

What are the potential repercussions for Binance from this lawsuit?

If successful, Binance could receive compensatory and punitive damages, restoring its reputation and reinforcing its compliance credentials. The outcome may also influence how media interacts with crypto firms regarding complex regulatory issues.

Could this lawsuit affect the crypto market and media relations?

Yes, the lawsuit’s outcome might set a precedent on media standards in crypto reporting and could alter the dynamic between crypto companies and journalists. It underscores the need for balanced coverage and accurate dissemination of information.

What steps has Binance taken to ensure compliance with international regulations?

Binance claims to have enhanced its compliance protocols, achieving a 96.8% reduction in sanctions risks, and maintains a substantial compliance team. These efforts are part of Binance’s initiative to align with international regulatory expectations.

On March 16, 2026, in Dallas, Texas, USA, CanGu Company (New York Stock Exchange code: CANG, hereinafter referred to as "CanGu" or the "Company") today announced its unaudited financial performance for the fourth quarter and full year ended December 31, 2025. As a btc-42">bitcoin mining enterprise relying on a globally operated layout and dedicated to building an integrated energy and AI computing power platform, CanGu is actively advancing its business transformation and infrastructure development.

2025 Full Year and Fourth Quarter Financial and Operational Highlights

• Financial Performance:

Total revenue for the full year 2025 was $688.1 million, with $179.5 million in the fourth quarter.

Bitcoin mining business revenue for the full year was $675.5 million, with $172.4 million in the fourth quarter.

Full-year adjusted EBITDA was $24.5 million, while the fourth quarter was -$156.3 million.

• Mining Operations and Costs:

A total of 6,594.6 bitcoins were mined throughout the year, averaging 18.07 bitcoins per day; of which 1,718.3 bitcoins were mined in the fourth quarter, averaging 18.68 bitcoins per day.

The average mining cost for the full year (excluding miner depreciation) was $79,707 per bitcoin, and for the fourth quarter, it was $84,552;

The all-in sustaining costs were $97,272 and $106,251 per bitcoin, respectively.

As of the end of December 2025, the company has cumulatively produced 7,528.4 bitcoins since entering the bitcoin mining business.

• Strategic Progress:

The company has completed the termination of the American Depositary Receipt (ADR) program and transitioned to a direct listing on the NYSE to enhance information transparency and align with its strategic direction, with a long-term goal of expanding its investor base.

CEO Paul Yu stated: "2025 marked the company's first full year as a bitcoin mining enterprise, characterized by rapid execution and structural reshaping. We completed a comprehensive adjustment of our asset system and established a globally distributed mining network. Additionally, the company introduced a new management team, further strengthening our capabilities and competitive advantage in the digital asset and energy infrastructure space. The completion of the NYSE direct listing and USD pricing also signifies our transformation into a global AI infrastructure company."

"As we enter 2026, the company will continue to optimize its balance sheet structure and enhance operational efficiency and cost resilience through adjustments to the miner portfolio. At the same time, we are advancing our strategic transformation into an AI infrastructure provider. Leveraging EcoHash, we will utilize our capabilities in scalable computing power and energy networks to provide cost-effective AI inference solutions. The relevant site transformations and product development are progressing simultaneously, and the company is well-positioned to sustain its execution in the new phase."

The company's Chief Financial Officer, Michael Zhang, stated: "By 2025, the company is expected to achieve significant revenue growth through its scaled mining operations. Despite recording a net loss of $452.8 million from ongoing operations, mainly due to one-time transformation costs and market-driven fair value adjustments, the company, from a financial perspective, will reduce its leverage, optimize its Bitcoin reserve strategy and liquidity management, introduce new capital to strengthen its financial position, and seize investment opportunities in high-potential areas such as AI infrastructure while navigating market volatility."

Fourth Quarter 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the fourth quarter was $1.795 billion. Of this, the Bitcoin mining business contributed $1.724 billion in revenue, generating 1,718.3 Bitcoins during the quarter. Revenue from the international automobile trading business was $4.8 million.

Operating Costs and Expenses

The total operating costs and expenses for the fourth quarter amounted to $4.56 billion, primarily attributed to expenses related to the Bitcoin mining business, as well as impairment of mining machines and fair value losses on Bitcoin collateral receivables.

This includes:

· Cost of Revenue (excluding depreciation): $1.553 billion

· Cost of Revenue (depreciation): $38.1 million

· Operating Expenses: $9.9 million (including related-party expenses of $1.1 million)

· Mining Machine Impairment Loss: $81.4 million

· Fair Value Loss on Bitcoin Collateral Receivables: $171.4 million

Profit Situation

The operating loss for the fourth quarter was $276.6 million, a significant increase from a loss of $0.7 million in the same period of 2024, primarily due to the downward trend in Bitcoin prices.

The net loss from ongoing operations was $285 million, compared to a net profit of $2.4 million in the same period last year.

The adjusted EBITDA was -$156.3 million, compared to $2.4 million in the same period last year.

Full Year 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the full year was $6.881 billion. Of this, the revenue from the Bitcoin mining business was $6.755 billion, with a total output of 6,594.6 Bitcoins for the year. Revenue from the international automobile trading business was $9.8 million.

Operating Costs and Expenses

The total annual operating costs and expenses amount to $1.1 billion.

Specifically, they include:

· Revenue Cost (excluding depreciation): $543.3 million

· Revenue Cost (depreciation): $116.6 million

· Operating Expenses: $28.9 million (including related-party expenses of $1.1 million)

· Miner Impairment Loss: $338.3 million

· Bitcoin Collateral Receivable Fair Value Change Loss: $96.5 million

Profitability

The full-year operating loss is $437.1 million. The continuing operations net loss is $452.8 million, while in 2024, there was a net profit of $4.8 million.

The 2025 non-GAAP adjusted net profit is $24.5 million (compared to $5.7 million in 2024). This measure does not include share-based compensation expenses; refer to "Use of Non-GAAP Financial Measures" for details.

Financial Position

As of December 31, 2025, the company's key assets and liabilities are as follows:

· Cash and Cash Equivalents: $41.2 million

· Bitcoin Collateral Receivable (Non-current, related party): $663.0 million

· Miner Net Value: $248.7 million

· Long-Term Debt (related party): $557.6 million

In February 2026, the company sold 4,451 bitcoins and repaid a portion of related-party long-term debt to reduce financial leverage and optimize the asset-liability structure.

Stock Repurchase

As per the stock repurchase plan disclosed on March 13, 2025, as of December 31, 2025, the company had repurchased a total of 890,155 shares of Class A common stock for approximately $1.2 million.

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