U.S. Senator Richard Blumenthal announced a formal Senate inquiry into Binance after recent news reports revealed that the world’s largest cryptocurrency exchange allegedly facilitated nearly $1.7 billion in transactions tied to sanctioned Iranian entities and Russia’s so-called “shadow fleet” of oil tankers.
Summary
- Richard Blumenthal has opened a Senate inquiry into Binance following reports that the exchange processed roughly $1.7 billion in transactions linked to Iranian proxies and Russia’s shadow fleet.
- The investigation seeks documents related to Binance’s compliance practices and the alleged dismissal or sidelining of internal investigators who flagged suspicious accounts.
- Binance has denied wrongdoing and says it has significantly reduced sanctions exposure while strengthening its anti-money-laundering controls.
Blumenthal demands answers from Binance
The inquiry centers on questions about the company’s compliance practices and its response to internal warnings from compliance staff.
In a letter to Binance CEO Richard Teng, Blumenthal, ranking member of the Senate Permanent Subcommittee on Investigations, demanded documents and records detailing the circumstances surrounding the illicit transfers and why compliance personnel who uncovered the activity were reportedly suspended or dismissed.
Interestingly, the investigation comes as Binance recently said it has sharply reduced its exposure to sanctioned entities, reporting a roughly 96% drop in related activity between early 2024 and mid-2025. The exchange has argued that sanctions-linked transactions now account for a tiny fraction of total trading volume.
According to reporting in the New York Times and Wall Street Journal, Binance internal investigators found over 1,500 accounts accessed from Iran and traced funds sent through intermediaries, including Hexa Whale and Blessed Trust, to entities linked to Iran’s Islamic Revolutionary Guard Corps and payments to personnel on Russian ships evading sanctions.
Blumenthal’s letter also accused Binance of ignoring clear warning signs, allowing potentially illicit accounts to operate, and even reportedly providing support to money-laundering entities, despite a 2023 settlement with U.S. authorities that required enhanced anti-money-laundering controls.
The senator’s inquiry also references concerns about the reported firing of internal investigators who flagged the activity, raising questions about corporate compliance culture.
Binance has publicly denied that it knowingly facilitated sanctions evasion or that its compliance staff were punished for raising concerns, saying flagged accounts were offboarded and that it cooperates with regulators.
Source: https://crypto.news/senator-inquiry-into-binance-sanctions-violations/
