US Senator Richard Blumenthal has asked federal authorities for an update on Binance’s compliance with anti-money laundering and sanctions rules under its 2023 monitoring agreement.
The Connecticut lawmaker sent letters to the Justice Department and the Treasury’s Financial Crimes Enforcement Network seeking details on whether the exchange is adhering to obligations tied to its $4.3 billion settlement.
Blumenthal said he was concerned about “mounting allegations of dangerously lax anti-money laundering prevention by Binance,” according to reporting cited in the correspondence.
The inquiry follows reports that the exchange is under scrutiny over potential exposure to US sanctions involving Iran, including claims that significant funds flowed through the platform to linked entities.
Binance has denied the allegations, including reports that it dismissed staff who flagged roughly $1 billion in transactions tied to Iran, as scrutiny of its controls continues.
The 2023 settlement required Changpeng Zhao to plead guilty to a felony charge and mandated ongoing oversight of the exchange’s compliance systems by US authorities.
The latest request adds to earlier pressure from lawmakers, who have also raised concerns about potential conflicts of interest tied to political connections and past investment activity involving the company.