The company could face additional regulatory or legal actions
Binance is under scrutiny from the US Senate over claims it handled transactions linked to sanctioned entities in Iran and Russia. The investigation was triggered by reports suggesting the crypto exchange processed roughly $1.7 billion in transfers tied to Iranian government-affiliated organizations and Russian oil operators evading sanctions.
Senator Richard Blumenthal, ranking member of the Senate Permanent Subcommittee on Investigations, sent a formal request to Binance CEO Richard Teng. The letter seeks documents and internal records related to sanctions compliance, risk monitoring, and activity involving users connected to Iran or Russian sanction-evasion networks.
Reports cited by the senator indicate Binance staff flagged partner firms such as Hexa Whale and Blessed Trust as intermediaries for Iranian trades. Internal reviews allegedly traced payments to wallets linked to Iran’s Islamic Revolutionary Guards Corps and crews operating tankers circumventing Russian sanctions. Blumenthal argued the platform may have overlooked warning signs and allowed suspicious accounts to operate.
Binance has denied the allegations. A spokesperson stated the exchange identifies and reports suspicious transactions and does not permit Iranian users. CEO Teng called media claims defamatory and demanded retractions, emphasizing the platform has reduced exposure to high-risk jurisdictions by about 97% since January 2024.
The inquiry comes after Binance’s 2023 $4.3 billion settlement with U.S. authorities for Anti-Money Laundering and sanctions violations. The agreement included compliance monitoring and strengthened oversight. Senator Blumenthal highlighted that the newly reported activity could challenge the exchange’s adherence to these prior commitments.
Binance has repeatedly defended its practices, noting ongoing compliance improvements and claiming its internal controls now rank among the strongest in the crypto industry. The company faces a March 6 deadline to provide requested records, which could determine whether additional regulatory or legal actions are warranted.
