Binance Faces US Senate Inquiry Tied To $1.7 Billion In Sanctions-Related Transactions
Cryptocurrency trade Binance is as soon as once more dealing with scrutiny within the United States, this time following a proper inquiry launched by Democratic Senator Richard Blumenthal.
Senate Demands Records From Binance
In a letter dated February 24 and addressed to Binance co-CEO Richard Teng, Blumenthal cited experiences suggesting the corporate enabled “large-scale violations” of US and worldwide sanctions in opposition to Iran.
He wrote that the cryptocurrency trade seems to have disregarded warnings and suggestions designed to forestall Iranian cash laundering schemes, permitting roughly $1.7 billion in transfers linked to Iran.
According to the letter, these transactions allegedly supported Iranian-linked terrorist organizations and helped facilitate illicit Russian oil gross sales carried out by means of a so-called “shadow fleet” of tankers.
Blumenthal is in search of intensive documentation from Binance as a part of a preliminary inquiry by the Senate’s Permanent Subcommittee on Investigations (PSI).
The requests embrace information associated to Binance’s function in potential Iranian cash laundering, its dealing with of sanctioned entities, and its compliance practices. The Subcommittee has requested the corporate to offer supplies by March 6, 2026.
Alleged Findings Of Internal Review
The investigation attracts on reporting from The Wall Street Journal, The New York Times, and Fortune. According to these experiences, Binance’s inside compliance workers found that two companions—Hexa Whale and Blessed Trust—allegedly acted as intermediaries to launder funds and allow commerce with Iranian government-linked entities.
Internal evaluations reportedly recognized roughly 2,000 accounts related to Iranian entities on the trade, regardless of US banking restrictions and Binance’s public claims that it prohibits Iranian customers.
Documents obtained by the media shops additional recommend that Binance was warned that Hexa Whale might have been financing terrorist teams resembling Yemen’s Houthi motion.
Internal investigators additionally reportedly recognized cryptocurrency transfers to wallets related to Iran’s Islamic Revolutionary Guards Corps (IRGC) and funds to crew members working vessels in Russia’s sanctions-evading oil fleet.
Blumenthal’s letter alleges that Binance did not act decisively regardless of these warning indicators. Investigators throughout the firm reportedly really useful stronger “know your buyer” controls and steered banning sailors tied to Russia’s shadow fleet.
However, in response to the senator, these efforts had been rejected. Binance allegedly granted VIP standing to Hexa Whale though the agency was suspected of utilizing falsified documentation and its workers had been mentioned to have been immediately concerned in Blessed Trust’s questionable buying and selling exercise.
No Evidence Of Violations?
Binance has firmly rejected the allegations even forward of Blumenthal’s inquiry. In a February 22 statement, the corporate mentioned it carried out an inside overview and located “no proof of violations of relevant sanctions legal guidelines.” It additionally denied terminating investigators for elevating issues about sanctions-related exercise.
The trade emphasised that it has considerably strengthened its compliance programs since its 2023 settlement. According to Binance, sanctions-related publicity—measured as a share of total buying and selling quantity—declined from 0.284% in January 2024 to 0.009% by July 2025, representing a 96.8% discount.
The firm additionally reported that transaction quantity involving 4 main Iranian crypto exchanges fell from $4.19 million in January 2024 to $1.1 million by January 2026. Binance added that roughly one-quarter of its world workforce is now devoted to anti-money laundering and sanctions compliance capabilities.
At the time of writing, the trade’s native token, BNB, traded at $616, representing a surge of 5% within the 24-hour timeframe amid a slight rebound seen within the broader crypto market on Wednesday.
Featured picture from OpenArt, chart from TradingView.com
