A senior US lawmaker has initiated a congressional probe into crypto exchange Binance after reports alleged the platform processed about $1.7 billion in transactions connected to sanctioned Iranian entities and Russia’s oil “shadow fleet.”
On Tuesday, Richard Blumenthal, the ranking member of the Senate Permanent Subcommittee on Investigations, sent a letter to Richard Teng seeking documents and internal records tied to the exchange’s sanctions controls and compliance framework.
Referencing coverage by The Wall Street Journal, The New York Times and Fortune, Blumenthal said Binance’s compliance team had flagged two partner entities — Hexa Whale and Blessed Trust — as intermediaries facilitating trade with Iranian government-linked groups. Internal reviews reportedly traced transactions to wallets associated with Iran’s Islamic Revolutionary Guards Corps and to payments for crews operating tankers used to circumvent 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,” Blumenthal said. He requested communications, account data and internal compliance reports, including materials related to users linked to Iran and individuals involved in Russian sanctions-evasion networks.
Binance rejects allegations
A Binance spokesperson told Cointelegraph that the allegations are inaccurate, stating that the exchange identified and reported suspicious activity. The company also disputed earlier media coverage and maintained that it does not permit Iranian users on its 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 recent reports. Last week, the exchange denied a Fortune article claiming it handled more than $1 billion in Iran-linked transactions and rejected assertions that it dismissed internal investigators who raised concerns.
On Tuesday, Richard Teng pushed back against a report by The Wall Street Journal alleging $1.7 billion in Iran-linked transfers, describing the claims as defamatory and calling for a formal retraction. In a blog post published Monday, Binance said it has significantly reduced its exposure to sanctioned and high-risk jurisdictions, reporting an approximately 97% decline since January 2024 to around 0.009% of total exchange volume.
Senate inquiry scrutinizes compliance
The probe comes after Binance’s 2023 settlement with US regulators, under which the company agreed to pay $4.3 billion to resolve Anti-Money Laundering (AML) and sanctions violations. As part of the agreement, founder Changpeng Zhao stepped down as CEO and later served a four-month prison sentence. The exchange also accepted ongoing compliance monitoring and committed to strengthening its internal controls.
Sen. Richard Blumenthal wrote that the newly reported activity may call into question Binance’s compliance with the terms of that settlement. He set a March 6 deadline for the company to submit the requested documents and records.
