US Senator Probes Binance Over Iran, Russia Sanctions Claims
A senior U.S. senator has opened a congressional investigation into crypto exchange Binance following reports that the platform processed about $1.7 billion in transactions connected to sanctioned Iranian entities and Russia’s oil “shadow fleet.”
On Tuesday, Senator Richard Blumenthal, the ranking member of the Senate Permanent Subcommittee on Investigations, sent a letter to Binance CEO Richard Teng seeking documents and internal records regarding the exchange’s sanctions controls and compliance procedures. Citing reporting by the Wall Street Journal, the New York Times and Fortune, Blumenthal said Binance compliance staff had identified two partner entities, Hexa Whale and Blessed Trust, as intermediaries facilitating trade with organizations linked to the Iranian government.
According to the reports, internal investigators also traced transfers to wallets associated with Iran’s Islamic Revolutionary Guards Corps and payments to crews operating tankers allegedly used to circumvent sanctions on Russian oil exports. Blumenthal wrote that Binance appeared to overlook clear warning signs, allowed illicit accounts to operate, and provided support to entities engaged in money laundering.
The senator requested communications, account records and internal compliance reports, including materials related to users connected to Iran and participants in Russian sanctions-evasion networks.
Binance denies sanctions allegations
A Binance spokesperson said the recent allegations are inaccurate, asserting that the exchange identifies and reports suspicious activity and does not permit Iranian users on the platform. The spokesperson added that the company has undergone one of the industry’s strongest compliance transformations in recent years, enabling it to reach regulatory milestones.
Binance has disputed recent media coverage. Last week, the exchange denied a Fortune report claiming it processed more than $1 billion in Iran-linked transactions and dismissed investigators who raised concerns.
Binance’s response to Fortune report. Source: Richard Teng
On Tuesday, CEO Richard Teng also criticized a Wall Street Journal report alleging $1.7 billion in Iran-linked transfers, calling it defamatory and seeking a retraction. In a blog post Monday, Binance said it has substantially reduced exposure to sanctioned and high-risk jurisdictions, citing a roughly 97% decline since January 2024 to about 0.009% of exchange volume.
Senate probe examines Binance compliance
The inquiry follows Binance’s 2023 settlement with U.S. authorities, in which the company agreed to pay $4.3 billion for Anti-Money Laundering and sanctions violations. Founder Changpeng Zhao stepped down as CEO and later served a four-month prison sentence. Binance also agreed to monitoring and pledged to strengthen compliance controls.
Blumenthal wrote that the newly reported activity could raise concerns 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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