TLDR
- Senate probes Binance over $1.7B in transfers tied to sanctioned groups.
- Lawmakers seek answers on missed alerts and compliance failures at Binance.
- Inquiry targets Iranian and Russian links routed through Binance accounts.
- Senators question whether Binance upheld its 2023 settlement duties.
- Probe may reshape U.S. policy on crypto compliance and sanctions control.
U.S. lawmakers opened a new inquiry into Binance as reports linked the exchange to $1.7 billion in sanctioned transactions. The action signals fresh scrutiny of its compliance systems and demands detailed internal records. The Senate aims to determine whether Binance met its obligations under earlier enforcement agreements.
Senate Inquiry Intensifies Scrutiny of Binance
The Senate Permanent Subcommittee on Investigations launched the review after reports connected Binance to Iranian and Russian networks. The panel requested documents that explain how the transfers occurred and why internal warnings failed. The inquiry also seeks information about the suspension of compliance personnel who flagged concerns.
The request covers transfers tied to Iranian entities and Russia’s shadow fleet. Lawmakers want data on intermediaries that allegedly routed funds through the platform. The panel also asked for communication logs and compliance assessments that involve high-risk accounts.
Senators linked the issue to sanctions enforcement efforts that expanded after 2023. They highlighted concerns that Binance may not have corrected previous system gaps. The panel now expects full cooperation and set a March deadline for disclosures.
Compliance Failures and Intermediary Activity Under Review
The inquiry focuses on how Binance managed accounts linked to sanctioned jurisdictions. Reports indicated that two intermediaries helped route funds to Iranian-connected groups. Lawmakers want detailed records that explain the exchange’s handling of these relationships.
The Senate also requested transaction histories involving wallets tied to Russian oil tanker operators. These movements allegedly supported ships handling sanctioned exports. The panel aims to understand whether the activity continued after internal alerts.
Officials also requested information about stablecoins used in the transfers. They noted rising concerns about token flows in sanction-evading networks. The records may show whether Binance applied required controls across all assets.
Background and Regulatory Context for Binance
Binance has operated under U.S. oversight since a 2023 settlement. That agreement required stronger anti-money-laundering controls. It also mandated continuous monitoring of high-risk transactions.
The exchange paid significant penalties during that settlement and changed leadership. It pledged to tighten compliance systems and removed several risk-related features. The Senate inquiry now tests whether those commitments produced lasting reforms.
Recent statements from Binance indicated a sharp decline in exposure to sanctioned entities. The company said flagged accounts were offboarded promptly. It also stated that its compliance teams reported suspicious activity to relevant authorities.
The emerging probe marks the latest challenge for Binance as global supervision grows. Lawmakers now seek clarity about its internal processes. The findings may influence broader policy debates around digital asset compliance.
