Crypto-exchange Binance has filed a defamation lawsuit against The Wall Street Journal over a February article that alleged the exchange dismantled an internal investigation into cryptocurrency transactions tied to Iranian networks.

In a complaint announced Wednesday, Binance said the Feb. 23 report falsely claimed the company halted a compliance probe after investigators flagged more than $1 billion in crypto flows linked to entities connected to Iran-backed militant groups.

According to the newspaper’s reporting, internal investigators at Binance traced transactions through intermediaries, including a Hong Kong trading firm that allegedly moved hundreds of millions of dollars in stablecoins associated with Iranian networks. 

The article further claimed that investigators who raised concerns about the activity were later suspended or dismissed.

Binance has denied those allegations, saying the investigation was never stopped and that the exchange continued to pursue the matter internally.

“Binance categorically did not dismantle any compliance investigation,” a company spokesperson said Wednesday, adding that the publication “continues to report the same falsities.”

The lawsuit marks the latest escalation in a dispute between the exchange and the newspaper over reporting tied to sanctions-related crypto flows. Binance said the reporting caused reputational damage and misrepresented its compliance practices.

Dugan Bliss, global head of litigation at Binance, said the lawsuit was filed to address what the company described as misinformation about its operations.

“We view this lawsuit as a necessary step to defend ourselves against misinformation, and address the significant reputational harm and business consequences that have resulted,” Bliss said in a statement.

Binance said its internal investigation identified what it described as a “sophisticated, multi-jurisdictional pattern of financial activity” spanning Asia and the Middle East. The exchange said it offboarded accounts connected to the activity and reported its findings to law enforcement.

The company also pointed to its compliance program, saying it has invested hundreds of millions of dollars in monitoring and investigative systems and employs more than 1,500 staff in compliance, risk, and investigative roles.

DOJ probes Binance 

On top of this, just this morning the Journal reported that the U.S. Department of Justice is examining whether Iranian actors used the exchange to evade sanctions. 

According to the report, officials have contacted individuals with knowledge of transactions involving more than $1 billion in alleged flows linked to Iran-backed groups.

The Journal said investigators are seeking interviews and gathering evidence but it remains unclear whether the inquiry is focused on Binance itself or customers who used the platform.

Binance said it is not aware of any such investigation.

“We are not aware of any investigations,” the company said in response to the report, adding that it continues to cooperate with regulators and law enforcement where appropriate.