Senator Richard Blumenthal has opened a formal investigation into Binance following further allegations that the exchange assisted in the transfer of cash associated with Russia and Iran in breach of US sanctions. He argues that the claims cast doubt on Binance’s prior commitments to US authorities and pose major national security issues.
What the New Allegations Say
Recent investigative reports allege Binance allowed almost $2 billion in crypto flows linked to Iranian government entities and Russia’s shadow oil trade.
According to these reports, some of the activity involved intermediaries in Hong Kong that allegedly helped sanctioned parties route money through the exchange. The reports also say Binance’s own compliance staff flagged thousands of risky accounts, including users apparently connected to Iran.
Blumenthal’s office claims that although internal investigators warned leaders about these flows, management failed to act quickly or thoroughly. The senator argues that if this behavior is genuine, it would go well beyond technical mistakes and may amount to endorsing sanctions evasion. He stresses that Congress should rigorously review any potential infractions because sanctions are a key component of U.S. foreign policy.
What Blumenthal Is Demanding from Binance
In his letter to Binance CEO Richard Teng, Blumenthal asks for extensive documents and data by early March. He wants internal communications about Iranian‑linked accounts, transactions involving stablecoins like USDT, and any alerts sent to U.S. agencies. He also requests details on Binance’s relationships with outside firms named in the reporting, including when and how the exchange cut ties.
The senator further requests that Binance provide an explanation for the purported dismissal or marginalization of specific compliance staff following concerns raised about fines. He adds that Congress should know whether Binance is complying with the strict reporting and monitoring rules it agreed to in the U.S. settlement last year. The deal requires Binance to restructure its anti-money laundering and sanctions measures and to adhere to independent oversight for a number of years.
Binance denies intentionally assisting sanctioned parties and claims it has already decreased or eliminated its exposure to high‑risk areas. The exchange claims to have canceled accounts when it discovered sanctions violations, observed suspicious behavior, and used advanced blockchain analytics. The reforms it implemented following its 2023 $4.3 billion settlement with U.S. regulators are also mentioned.
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