TLDR
- Senator Richard Blumenthal opened a formal inquiry into alleged sanctions violations involving Binance.
- Blumenthal requested records about $1.7 billion in transfers reportedly linked to Iran-based organizations.
- The inquiry follows media reports that cited internal investigations and staff dismissals at Binance.
- Binance denied the allegations and stated that it enforces strict know-your-customer procedures.
- The exchange said it closed accounts tied to Blessed Trust and ended the relationship in January.
U.S. Senator Richard Blumenthal has opened a formal inquiry into alleged sanctions violations involving Binance. He requested detailed records about reported transfers linked to Iran-based organizations. The probe follows media reports that cited internal findings and staff dismissals at the crypto exchange.
Senate Panel Seeks Records on Alleged Transfers
Blumenthal, a senior Democrat on the Senate Homeland Security Committee, sent a letter to Binance leadership on Tuesday. He asked for information about $1.7 billion in transfers reportedly tied to Iran-linked groups. The New York Times reported that internal investigators identified the transactions before their dismissal.
The senator requested records concerning dealings with two Hong Kong entities linked to the transfers. He also sought documents about the suspension and dismissal of compliance staff. “Binance appears to have ignored warnings,” Blumenthal wrote, citing alleged Iranian money laundering schemes.
One account reportedly belonged to Blessed Trust, a Hong Kong company that served as a Binance vendor. A Binance representative told the newspaper that the exchange closed the accounts in January. The company said it ended its relationship with Blessed Trust at that time.
Blumenthal directed his letter to Binance co-chief executive Richard Teng. He asked for full documentation of the company’s compliance measures. He also requested internal communications related to the flagged transactions.
Binance Responds to Allegations and Cites Compliance Measures
Binance denied the allegations in a statement sent to CoinDesk. “The New York Times’ prior reporting is wrong,” a spokesperson said. The spokesperson stated that Binance maintains strict know-your-customer procedures and bars Iranian users.
The exchange also rejected claims about dismissing investigators over their findings. It described the reports by several publications as false. The company reiterated its stance against what it called inaccurate claims.
Binance founder Changpeng Zhao pleaded guilty in November 2023 to anti-money-laundering violations. He admitted that the platform allowed users in sanctioned countries to transact. The company agreed to pay $4.3 billion in penalties and exit the U.S. market.
Zhao later served four months in prison for his role in the case. President Donald Trump issued a pardon after his sentence. Binance stated in a recent blog post that its “sanctions-related exposure is minimal.”
Rachel Conlan, another spokesperson, confirmed an ongoing internal investigation. She told the Times that Binance will submit a full report to the U.S. Justice Department on Feb. 25.
