A senior US lawmaker has initiated a congressional inquiry into cryptocurrency exchange Binance. This probe follows reports alleging the platform processed approximately $1.7 billion in transactions connected to sanctioned Iranian entities and Russia's oil "shadow fleet."
Senator Richard Blumenthal, ranking member of the Senate Permanent Subcommittee on Investigations, has requested documents and internal records from Binance CEO Richard Teng concerning the exchange’s sanctions controls and compliance practices. The senator cited reporting indicating that Binance compliance staff identified partner entities, Hexa Whale and Blessed Trust, as intermediaries for 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 tankers evading Russian oil export sanctions.
Senator Blumenthal stated, "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." He is seeking communications, account records, and internal compliance reports.
A Binance spokesperson refuted the allegations, calling them inaccurate and asserting the platform identified and reported suspicious activity. The exchange maintained that it does not permit Iranian users and highlighted its significant compliance transformation over recent years.
Binance CEO Richard Teng has publicly criticized media reports, calling a Wall Street Journal report alleging $1.7 billion in Iran-linked transfers "defamatory" and demanding a retraction. The exchange claims it has drastically reduced exposure to sanctioned and high-risk jurisdictions by approximately 97% since January 2024.
This inquiry follows Binance's 2023 settlement with US authorities, where the company agreed to pay $4.3 billion for Anti-Money Laundering and sanctions violations. Founder Changpeng Zhao stepped down as CEO and served a four-month prison sentence. Binance also committed to enhanced compliance monitoring.
Senator Blumenthal indicated that the newly reported activity could question Binance's adherence to its previous agreement and has set a March 6 deadline for the exchange to provide the requested materials.