A group of 11 U.S. senators has asked federal authorities to investigate whether crypto exchange Binance is complying with U.S. sanctions and anti‑money‑laundering (AML) rules, citing recent reports.
In a letter Friday to Treasury Secretary Scott Bessent and Attorney General Pamela Bondi, the lawmakers requested a “prompt, comprehensive review” of Binance’s compliance controls and adherence to settlement agreements reached in 2023. They pointed to allegations that roughly $1.7 billion in digital assets flowed through Binance to Iranian entities tied to terrorism, including groups linked to the Houthis and the Islamic Revolutionary Guard Corps. Investigators reportedly identified more than 1,500 accounts accessed by users in Iran and possible activity connected to evasion of Russian sanctions.
The senators said some Binance compliance staff who flagged suspicious transactions were later dismissed and that law enforcement agencies have observed the exchange becoming less cooperative in providing customer information. They also raised concerns about newer Binance products — including payment cards rolled out in parts of the former Soviet Union and partnerships tied to stablecoin initiatives — warning these could enable sanctions evasion. The senators asked the agencies to report by March 13 on any steps taken to examine the exchange’s conduct.
Separately, Senator Richard Blumenthal, ranking member of the Senate Permanent Subcommittee on Investigations, opened a congressional inquiry and sent a letter to Binance CEO Richard Teng requesting documents and internal records related to the exchange’s sanctions controls.
Binance has denied the reports. In a statement to Cointelegraph, the company said it identifies and reports suspicious activity to authorities, does not allow Iranian users, and that recent media coverage misrepresented its operations. Last week Binance disputed a report alleging it processed more than $1 billion in Iran‑linked transfers and denied firing investigators over the issue. CEO Richard Teng has criticized a Wall Street Journal report claiming $1.7 billion in Iran‑related activity, calling it defamatory and seeking a retraction.
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