US Senate probes Binance over Iran, Russia sanctions evasion
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The US Senate has opened a formal inquiry into Binance after reports that the exchange processed nearly $1.7 billion in transactions linked to sanctioned Iranian entities and Russia’s shadow fleet of oil tankers.
The move signals renewed political scrutiny of the world’s largest cryptocurrency trading platform and its internal compliance controls.
US Senator Richard Blumenthal, the ranking member of the Senate Permanent Subcommittee on Investigations, has requested detailed records from Binance leadership.
The inquiry follows media reports and focuses on how the company handled internal warnings, suspicious accounts, and potential sanctions breaches.
Senate inquiry launched
Blumenthal confirmed that he has sent a letter to Binance chief executive Richard Teng demanding documents related to the alleged transfers.
The request seeks clarity on how the transactions occurred and how the company responded once concerns were raised internally.
The senator is asking for records explaining why compliance personnel who reportedly identified the activity were later suspended or dismissed.
The letter also questions the broader compliance framework at the exchange, particularly in light of previous regulatory scrutiny.
The inquiry refers to reporting by the New York Times and the Wall Street Journal, which detailed how Binance's internal investigators allegedly identified more than 1,500 accounts accessed from Iran.
According to those reports, funds were traced through intermediaries including Hexa Whale and Blessed Trust.
Those transfers were allegedly linked to entities associated with Iran’s Islamic Revolutionary Guard Corps and to payments involving personnel on Russian vessels described as part of a shadow fleet operating to evade sanctions.
Binance had denied the allegations that it had retaliated against its internal investigation members.
Sanctions and compliance concerns
Blumenthal’s letter states that Binance has long been aware of the risks of its platform being used to bypass international sanctions, anti-money laundering controls, and other banking restrictions.
The inquiry raises concerns about whether warning signs were ignored and whether potentially illicit accounts were allowed to continue operating.
The letter also refers to a 2023 settlement with US authorities that required Binance to strengthen its anti-money laundering systems.
The Senate probe examines whether the exchange met those commitments and whether additional enforcement steps may be required.
Questions have also been raised about the company’s internal compliance culture as well.
Binance response and activity drop
Binance has publicly denied knowingly facilitating sanctions evasion.
The exchange has said that flagged accounts were offboarded and that it continues to cooperate with regulators.
The company recently reported that it has significantly reduced exposure to sanctioned entities. According to Binance, activity linked to such entities fell by roughly 96% between early 2024 and mid 2025.
It also stated that sanctions-related transactions now represent only a small fraction of overall trading volume.
The Senate inquiry will now examine internal documents and compliance records to determine how the reported transactions occurred and whether Binance’s control systems were sufficient.
The post US Senate probes Binance over Iran, Russia sanctions evasion appeared first on Invezz
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US Senate probes Binance over Iran, Russia sanctions evasion
Share:
The US Senate has opened a formal inquiry into Binance after reports that the exchange processed nearly $1.7 billion in transactions linked to sanctioned Iranian entities and Russia’s shadow fleet of oil tankers.
The move signals renewed political scrutiny of the world’s largest cryptocurrency trading platform and its internal compliance controls.
US Senator Richard Blumenthal, the ranking member of the Senate Permanent Subcommittee on Investigations, has requested detailed records from Binance leadership.
The inquiry follows media reports and focuses on how the company handled internal warnings, suspicious accounts, and potential sanctions breaches.
Senate inquiry launched
Blumenthal confirmed that he has sent a letter to Binance chief executive Richard Teng demanding documents related to the alleged transfers.
The request seeks clarity on how the transactions occurred and how the company responded once concerns were raised internally.
The senator is asking for records explaining why compliance personnel who reportedly identified the activity were later suspended or dismissed.
The letter also questions the broader compliance framework at the exchange, particularly in light of previous regulatory scrutiny.
The inquiry refers to reporting by the New York Times and the Wall Street Journal, which detailed how Binance's internal investigators allegedly identified more than 1,500 accounts accessed from Iran.
According to those reports, funds were traced through intermediaries including Hexa Whale and Blessed Trust.
Those transfers were allegedly linked to entities associated with Iran’s Islamic Revolutionary Guard Corps and to payments involving personnel on Russian vessels described as part of a shadow fleet operating to evade sanctions.
Binance had denied the allegations that it had retaliated against its internal investigation members.
Sanctions and compliance concerns
Blumenthal’s letter states that Binance has long been aware of the risks of its platform being used to bypass international sanctions, anti-money laundering controls, and other banking restrictions.
The inquiry raises concerns about whether warning signs were ignored and whether potentially illicit accounts were allowed to continue operating.
The letter also refers to a 2023 settlement with US authorities that required Binance to strengthen its anti-money laundering systems.
The Senate probe examines whether the exchange met those commitments and whether additional enforcement steps may be required.
Questions have also been raised about the company’s internal compliance culture as well.
Binance response and activity drop
Binance has publicly denied knowingly facilitating sanctions evasion.
The exchange has said that flagged accounts were offboarded and that it continues to cooperate with regulators.
The company recently reported that it has significantly reduced exposure to sanctioned entities. According to Binance, activity linked to such entities fell by roughly 96% between early 2024 and mid 2025.
It also stated that sanctions-related transactions now represent only a small fraction of overall trading volume.
The Senate inquiry will now examine internal documents and compliance records to determine how the reported transactions occurred and whether Binance’s control systems were sufficient.
The post US Senate probes Binance over Iran, Russia sanctions evasion appeared first on Invezz
In This News
Funds
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In This News
Funds
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SEC Chairman’s Controversial Appearance: Agency Head to Speak at Event Sponsored by Firm It’s Actively Suing