The U.S. Department of Justice is investigating whether Iran used the cryptocurrency exchange Binance to evade international sanctions, according to reports. The probe focuses on money allegedly flowing through the digital asset platform to networks that provide backing for designated terrorist organizations.

The investigation specifically examines financial flows to networks supporting Yemen's Houthi militants, among other groups classified as terrorist organizations by the United States. Iran has faced extensive economic sanctions from the U.S. and international partners over its nuclear program and support for proxy groups across the Middle East.

Cryptocurrency platforms have increasingly come under scrutiny from regulators and law enforcement agencies for their potential use in sanctions evasion and money laundering schemes. The decentralized nature of digital assets can make them attractive to sanctioned entities seeking to move funds outside traditional banking systems.

Binance, one of the world's largest cryptocurrency exchanges, has faced regulatory challenges in multiple jurisdictions. The exchange has previously implemented compliance measures and worked with authorities on investigations, though the company has not publicly commented on this specific probe.

The investigation comes as the Biden administration has intensified efforts to enforce sanctions against Iran and its proxy networks. The Houthis, who control much of northern Yemen, have been engaged in conflict with a Saudi-led coalition since 2014 and have been designated as a terrorist organization by several countries.