A senior US lawmaker launched a congressional inquiry into crypto exchange Binance following reports that the platform processed about $1.7 billion in transactions tied to sanctioned Iranian entities and Russia’s oil “shadow fleet.”
On Tuesday, Senator Richard Blumenthal, ranking member of the Senate Permanent Subcommittee on Investigations, sent a letter to Binance CEO Richard Teng requesting documents and internal records related to the exchange’s sanctions controls and compliance practices.
Citing reporting from the Wall Street Journal, New York Times and Fortune, Blumenthal said Binance compliance staff had identified two partner entities, including Hexa Whale and Blessed Trust, as intermediaries enabling trade with Iranian government-linked organizations. Internal investigators also reportedly traced transfers to wallets associated with Iran’s Islamic Revolutionary Guards Corps and payments to crews operating tankers used to bypass sanctions on Russian oil exports.
“Binance appears to have ignored clear warning signs, knowingly allowed illicit accounts to operate, and even provided hands-on support to entities engaged in money laundering,” the senator said. He requested communications, account records and internal compliance reports, including any materials related to users connected to Iran and participants in Russian sanction-evasion networks.
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Binance denies sanctions allegations
A Binance spokesperson told Cointelegraph that the recent allegations are inaccurate, saying that the platform identified and reported suspicious activity. The exchange disputed earlier media coverage and maintained that it does not allow Iranian users on the platform.
“Over the last several years, Binance has undergone one of the industry’s strongest compliance transformations, which has allowed us to achieve our current regulatory milestones,” the spokesperson said.
Binance has repeatedly pushed back against the recent media reports. Last week, the exchange denied a Fortune report alleging it processed over $1 billion in Iran-linked transactions and dismissed investigators who raised concerns.
On Tuesday, Binance CEO Richard Teng also criticized a Wall Street Journal report alleging $1.7 billion in Iran-linked transfers, calling it defamatory and demanding a retraction. In a blog post Monday, Binance said it has sharply cut exposure to sanctioned and high-risk jurisdictions, claiming a roughly 97% drop since January 2024 to about 0.009% of exchange volume.
Related: Binance confirms employee targeted as three arrested in France break-in
Senate probe questions Binance compliance
The inquiry follows Binance’s 2023 settlement with US authorities, in which the company agreed to pay $4.3 billion for Anti-Money Laundering (AML) and sanctions violations. Founder Changpeng Zhao stepped down as CEO and later served a four-month prison sentence. Binance also agreed to be monitored and pledged to strengthen compliance controls.
Blumenthal wrote that the newly reported activity could raise questions about the exchange’s adherence to that agreement. He set a March 6 deadline for Binance to provide the requested materials.
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