Investigation into Binance by U.S. Senators
On February 27, a group of Democratic senators in the United States called upon the Treasury Department and the Justice Department to conduct a thorough investigation into Binance, a prominent cryptocurrency exchange, regarding its compliance with financial regulations concerning money laundering and sanctions.
Concerns Raised in Letter
In a letter addressed to Treasury Secretary Scott Bessent and Attorney General Pamela Bondi, the lawmakers expressed the need for an immediate and detailed evaluation of Binance’s systems designed to combat illicit finance and ensure adherence to sanctions. These concerns were prompted by revelations suggesting that Binance might not have adequately blocked transactions involving sanctioned individuals or entities.
The letter highlighted alarming reports indicating that substantial amounts of cryptocurrency—around $1.7 billion—have been transferred through Binance to connections associated with Iran, including organizations linked to the Islamic Revolutionary Guard Corps and the Houthi movement.
Furthermore, the senators noted that a vendor related to Binance allegedly processed roughly $1.2 billion tied to these Iranian entities, and that over 1,500 accounts linked to Iranian individuals accessed the exchange, defying U.S. sanctions.
Potential Links to Russian Entities
In addition, the senators raised issues surrounding potential links between Binance and Russian entities purportedly attempting to evade sanctions. They suggested that if these reports are accurate, it would expose critical gaps in Binance’s compliance monitoring and sanctions filtering mechanisms.
Compliance with Settlement Agreement
The lawmakers also sought clarification on whether Binance has been fulfilling the stipulations outlined in a settlement agreement reached with U.S. authorities in November 2023, wherein the exchange and its founder settled allegations related to sanctions and money laundering violations by paying billions in fines and agreeing to heightened compliance oversight.
They urged the Treasury and DOJ to determine if Binance remains aligned with the terms of this settlement and inquired about any possible retaliatory actions against compliance personnel who may have flagged these serious infractions.
Conclusion
In conclusion, the senators emphasized the vital role of strict enforcement of anti-money laundering and sanctions regulations in safeguarding U.S. national security, insisting that cryptocurrency exchanges should be held to the same standards as traditional financial institutions.
