An official inquiry has been initiated by US Senator Richard Blumenthal concerning allegations against the global cryptocurrency exchange Binance. Accusations surfaced claiming the platform facilitated $1.7 billion in transactions connected to entities under Iranian sanctions as well as Russia’s so-called “shadow fleet.” Senator Blumenthal, a key figure in the Senate’s Permanent Subcommittee on Investigations, seeks comprehensive explanations from Binance amid these allegations.
What Information Has the Senate Requested?
In a request addressed to Binance’s CEO Richard Teng, Senator Blumenthal demanded that Binance divulges specific internal records. These requested documents are intended to shed light on how suspected transactions transpired and assess any measures the company has enacted in response. The investigation also delves into whether Binance personnel identified any potential compliance failures and what remedies were applied.
Is There Evidence of Iranian and Russian Connections?
Yes, reports from renowned publications like The New York Times and The Wall Street Journal indicate Binance’s internal investigations have pinpointed over 1,500 user accounts linked to Iran. These fund transfers involved several intermediaries, including Hexa Whale and Blessed Trust, with ultimate ties alleged to be with Iran’s Islamic Revolutionary Guard Corps (IRGC). Accusations also suggest connections to Russian vessels trying to dodge Western sanctions.
In a formal statement, Blumenthal remarked on Binance’s violations, saying:
Binance has engaged in repeated violations.
The senator suggested that Binance might have facilitated Iran and its associated bodies in evading imposed financial restrictions and anti-money laundering protocols via their platform.
How Does Binance Defend Its Compliance Record?
In response to the controversy, Binance asserts its recent compliance initiatives have been robust. The exchange argues that there has been a significant decline in transaction volumes involving sanctioned entities, claiming a reduction of 96% between early 2024 and mid-2025. The platform insists transactions tied to sanctioned parties are a minor portion of its overall exchange operations.
The letter from Blumenthal questioned Binance’s dedication to compliance obligations, especially after a 2023 settlement with US authorities. Concerns also arose surrounding internal alerts about suspicious activities possibly being sidelined and the alleged termination of employees tasked with oversight of such activities.
However, Binance has strongly refuted all accusations of sanctions violations and emphasized its ongoing collaboration with regulatory entities worldwide, along with its commitment to eliminating implicated accounts from its system.
With the investigation unfolding, the spotlight is on how Binance addresses these troubling concerns, balancing its growth ambitions with regulatory expectations.
