Eleven Democratic senators have formally urged the U.S. Treasury and Department of Justice to investigate Binance over alleged breaches of sanctions and anti-money laundering laws.
The lawmakers sent a letter on 27 February warning that reported compliance weaknesses at the cryptocurrency exchange could present significant national security threats.
“We write to express our concern with illicit finance risks presented by the digital asset firm Binance Holdings Ltd. (Binance). Recent reports raise serious concerns about the strength of illicit finance guardrails at Binance’s digital asset exchange, as well as its adherence to 2023 settlements for apparent violations of sanctions rules and breaches of anti-money laundering laws,”
The lawmakers said.
“We urge you to conduct a prompt, comprehensive review of sanctions compliance on the platform to ensure that it is not once again violating the law and threatening U.S. national security,”
They added.
The letter was addressed to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, with senators warning that any support for terrorist-linked financing would directly endanger American security.
“Our national security is at risk if Binance is supporting the financial activities of terrorist groups or other adversaries of the United States that seek to do our nation harm,”
The senators stated.
The signatories included Chris Van Hollen, Elizabeth Warren, Jack Reed, Mark R. Warner, Catherine Cortez Masto, Tina Smith, Raphael Warnock, Andy Kim, Ruben Gallego, Lisa Blunt Rochester and Angela D. Alsobrooks.
They emphasised that no new violations have been formally confirmed and that the allegations remain unproven at this stage.
The senators also called for scrutiny of Binance’s compliance functions and any potential retaliation against staff tasked with enforcing regulatory standards.
“We accordingly urge Treasury and the Justice Department to conduct a timely, thorough inquiry into Binance’s sanctions compliance functions, including into possible retaliation against Binance compliance personnel and the company’s observance of its 2023 settlement agreements. Binance’s long-established role in illicit finance around the world means it is critical to remain vigilant about risks at the exchange,”