Connecticut Senator Richard Blumenthal has launched an inquiry into Binance, the world's largest cryptocurrency exchange. The investigation centers on allegations that Binance facilitated Iranian money laundering and circumvented sanctions related to Russia's oil trade.
Reports suggest Binance partners may have acted as intermediaries for illicit transactions involving Iranian government entities and terrorist groups, including the Houthis. These alleged activities involved nearly $2 billion in transfers, despite internal compliance warnings.
Blumenthal is also examining Binance's compliance record following its 2023 guilty plea and its founder's subsequent pardon. The senator has requested detailed records from Binance regarding suspected transactions and the use of crypto assets in illicit finance.
Binance has disputed the latest allegations, asserting a significant reduction in Iran-linked activity and denying that compliance staff were terminated over these concerns. The exchange previously paid $4.3 billion in penalties and agreed to an independent compliance monitor.
Senator Blumenthal has set a March 6 deadline for Binance to provide the requested documentation.