Cryptocurrency exchange Binance has replied to a February inquiry from 11 US senators, rejecting allegations that it facilitated transactions to Iranian entities and disputing claims about employee firings.
In a letter to Senators Richard Blumenthal and Ron Johnson, Binance said the inquiry was grounded in reporting that was “demonstrably false, unsupported by credible evidence, and defamatory in several material respects.” The exchange specifically challenged reporting from the Wall Street Journal, The New York Times and Fortune that said Binance fired employees who reported the company had facilitated more than $1 billion in crypto transactions to entities tied to Iran, named Hexa Whale and Blessed Trust.
Binance said it launched investigations after law enforcement inquiries and removed the cited entities from its platform. The company stated, “[t]o our knowledge, no Binance account transacted directly with an Iran-based entity.”
Addressing the reports about employee dismissals, Binance said some employees resigned and one was terminated for improperly disclosing internal user information. “Binance takes seriously the privacy of its users and has no tolerance for employees violating that trust by sharing internal information externally. Binance also closely follows its labor and employment policies. This employment action was no different,” the company wrote.
The senators’ letter also asked Treasury Secretary Scott Bessent and Attorney General Pamela Bondi whether the government intended to investigate Binance, requesting a response by March 13. As of the company’s letter, neither official had publicly commented.
Background: In 2023 Binance agreed to pay $4.3 billion to settle alleged violations of sanctions and anti‑money‑laundering laws. Then‑CEO Changpeng “CZ” Zhao pleaded guilty to one felony charge, stepped down, and served a four‑month prison term. In October, President Donald Trump pardoned Zhao, legally allowing a possible return to a leadership role, though Zhao has said he will not resume the CEO position.
Separately, lawmakers have scrutinized ties between the administration and Binance after UAE‑based MGX used the USD1 stablecoin issued by World Liberty Financial to settle a $2 billion investment in Binance; critics have questioned the deal because World Liberty Financial is backed by the president and his sons.
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