Dow Jones Publication Argues Binance Failed to Prove Actual Malice Over Articles Detailing Alleged Iranian Sanctions Cover-Up
The Wall Street Journal asked a federal judge Wednesday afternoon to dismiss a defamation suit filed by Binance regarding news reports that the cryptocurrency exchange covered up an internal probe showing platform funds flowing to sanctioned entities linked to Iranian-backed terror groups.
Represented by Dow Jones, the newspaper argues that Binance’s March 2026 complaint fails to establish that the publication acted with actual malice when publishing three articles detailing alleged compliance obstruction, internal investigation dismantling, and permitted transactions with sanctioned Iranian entities.
During oral arguments before U.S. District Judge Paul Engelmayer, Wall Street Journal attorney Katherine Bolger of Davis Wright Tremaine emphasized that the suit stems from Binance’s dissatisfaction with truthful reporting rather than false facts. The Journal’s motion stated that Binance’s reliance on pre- and post-publication self-serving denials does not substitute for a valid defamation claim. Furthermore, the Journal noted that prior coverage of the same matters by other prominent outlets like The New York Times and Fortune undermines any assertion of actual malice.
Binance’s Defense and Court Proceedings
Binance’s legal counsel, Christopher Norman Lavigne of Withers Bergman, countered that the reports relied on misleading implications, pointing to sensationalized headlines such as “Binance Fired Staff Who Flagged $1 Billion Moving to Sanctioned Iran Entities” and arguing that internal probes were never actually dismantled. Judge Engelmayer pressed Binance to specify how individual statements among 22 allegedly actionable claims were factually inaccurate, and questioned why legal action singled out the Journal when other media organizations published similar findings.
Judge Engelmayer did not rule from the bench, taking the dismissal motion under submission. The legal battle unfolds against the backdrop of former Binance CEO Changpeng “CZ” Zhao’s 2023 guilty plea for failing to prevent money laundering, his subsequent four-month prison sentence, and his recent pardon by President Donald Trump.
