US Senator Richard Blumenthal has opened a congressional investigation into Binance following reports that the crypto exchange processed roughly $1.7 billion in transactions linked to sanctioned Iranian entities and Russia’s oil “shadow fleet.”
In a letter sent Tuesday to Binance chief executive Richard Teng, Blumenthal requested internal documents and communications related to the exchange’s sanctions controls and compliance practices, citing media reports that flagged intermediary entities and wallets tied to Iran’s Islamic Revolutionary Guards Corps.
“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,”
Said Senator Richard Blumenthal.
The inquiry references reporting that Binance compliance staff had identified partners including Hexa Whale and Blessed Trust as intermediaries facilitating trade with Iranian-linked organisations, as well as transfers associated with tankers allegedly used to bypass sanctions on Russian oil exports.
A Binance spokesperson rejected the claims, stating that the platform flags suspicious activity and enforces strict compliance procedures while barring Iranian users from accessing its services.
“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.
The probe follows Binance’s 2023 $4.3 billion settlement with US authorities over anti-money laundering and sanctions violations, after which founder Changpeng Zhao stepped down and the exchange agreed to enhanced monitoring, with Blumenthal setting a March 6 deadline for the company to provide requested materials.