Despite Binance's landmark $4.3 billion U.S. criminal settlement in 2023 and its pledge to enhance compliance, the exchange reportedly failed to prevent hundreds of millions in cryptocurrency from flowing through suspicious accounts.

An investigation into Binance's internal documents, which detail thousands of transactions, revealed that these accounts continued operating despite multiple red flags, including unusual login patterns and failed identity verification.

Many accounts kept trading even after Binance's guilty plea agreement with U.S. authorities—behavior that experts say would typically trigger account freezes or investigations in regulated financial institutions.

Key suspicious activities included: - Transferring tens or even hundreds of millions of dollars in abnormal patterns; - Accounts being accessed from opposite sides of the globe within hours.

The findings emerged after former U.S. President Donald Trump pardoned Binance founder Changpeng Zhao in October. Zhao had previously faced criminal liability for willfully violating U.S. anti-money laundering laws. Subsequently, the Trump family expanded business ties with Zhao’s exchange this month.

Jeffrey Simser, an anti-money laundering lawyer with 30 years of experience at Ontario’s Ministry of the Attorney General, called the findings "deeply troubling allegations." He added, "I cannot imagine any U.S. bank allowing this without major repercussions."

Binance stated it maintains "strict compliance controls and a zero-tolerance policy for illicit activity," with "robust systems to flag and investigate suspicious transactions, including restricting accounts when necessary under regulatory obligations."

The exchange, serving 300 million users, facilitates trading in digital tokens and stablecoins pegged to fiat currencies.

Binance rebounded after admitting in 2023 to criminal charges related to money laundering, banking violations, and breaching international financial sanctions, paying a record $4.3 billion fine.

Trump, who brands himself the "crypto president," contrasts sharply with the Biden administration’s focus on digital currency risks like fraud, crime, and speculative volatility. Crypto asset prices have surged since Trump’s election victory a year ago.

Under its November 2023 plea deal, Binance vowed to strengthen compliance, transaction monitoring, and sanctions controls. However, internal data reviewed from 2021 onward raises questions about the effectiveness of these reforms.