Investigation into Binance
Senator Richard Blumenthal, a member of the Senate Permanent Subcommittee on Investigations, has initiated a formal investigation into Binance, the largest cryptocurrency exchange globally. This follows revelations that it may have processed approximately $1.7 billion in transactions linked to sanctioned Iranian organizations and Russia’s unauthorized oil tanker fleet. The inquiry seeks to scrutinize Binance’s adherence to compliance regulations and address concerning reports of internal alerts from compliance officers that went unheeded.
Request for Documentation
In correspondence directed to Binance’s CEO, Richard Teng, Blumenthal has requested an array of documents related to these questionable transactions, in addition to information on the alleged suspension or termination of compliance personnel who reported the activity. This inquiry unfolds as Binance recently claimed it has made substantial reductions in its dealings with sanctioned actors, announcing a staggering 96% decrease in related transactions from early 2024 to mid-2025. The exchange asserts that instances of transactions associated with sanctions have diminished to a minimal portion of its overall trading volume.
Internal Investigations and Findings
Reports from reputable sources, including The New York Times and The Wall Street Journal, indicate that internal investigations at Binance identified over 1,500 accounts originating from Iran, tracing funds through intermediary organizations like Hexa Whale and Blessed Trust. These investigations linked the funds to the Islamic Revolutionary Guard Corps of Iran and payments involving personnel on Russian vessels circumventing sanctions.
Senator’s Criticism
In his letter, Senator Blumenthal described Binance as a “repeat offender,” emphasizing that the exchange has been aware for some time that its platform has been utilized by the Iranian regime and associated terrorist groups to evade international sanctions and financial regulations.
Furthermore, he criticized Binance for seemingly disregarding significant warnings, allowing questionable accounts to operate unchecked, and allegedly offering assistance to money laundering operations despite a settlement reached in 2023 with U.S. authorities, which mandated stricter anti-money laundering procedures.
Concerns Over Compliance Culture
The senator also highlighted concerns regarding the layoffs of internal investigators who had flagged such activities, which raises critical questions about the organization’s corporate compliance culture. In response, Binance has refuted claims that it knowingly facilitated sanctions evasion or that it retaliated against compliance staff for raising concerns, stating that accounts under scrutiny were removed from the platform and that the company remains committed to cooperating with regulatory bodies.
