Connecticut Senator Richard Blumenthal has asked U.S. authorities overseeing Binance for information about the exchange’s compliance with anti-money laundering (AML) rules and sanctions under its 2023 court-ordered monitoring program. In letters to the Department of Justice and the Treasury’s Financial Crimes Enforcement Network (FinCEN), Blumenthal expressed concern about “mounting allegations of dangerously lax anti-money laundering prevention by Binance.”
The inquiry follows Binance’s 2023 settlement in which the exchange agreed to pay $4.3 billion to resolve civil regulatory enforcement actions and its former CEO Changpeng “CZ” Zhao pleaded guilty to one felony charge. The settlement also imposed monitoring and reporting obligations on Binance to be enforced by U.S. officials. Representatives from DOJ and FinCEN who would be responsible for that oversight declined to comment, according to reporting.
Recent reports have intensified scrutiny of Binance, including allegations that the exchange was involved in evading U.S. sanctions on Iran. Those reports say Binance fired employees who warned that roughly $1 billion had flowed through the platform to entities tied to Iran; Binance has denied those claims.
In February, a group of senators urged Treasury officials to conduct a “prompt, comprehensive review” of Binance’s compliance controls. That letter, led by Senator Chris Van Hollen and co-signed by 10 lawmakers, sought action from Treasury Secretary Scott Bessent and former Attorney General Pamela Bondi.
Separately, questions about ties between Binance and former President Donald Trump remain under scrutiny. In March 2025, a UAE-based entity reportedly bought a $2 billion stake in Binance using the USD1 stablecoin issued by World Liberty Financial, a company co-founded by Trump and his sons. In October 2025, Trump pardoned CZ after the former CEO served four months in prison related to his 2023 guilty plea.
This reporting appears amid ongoing calls from lawmakers for robust enforcement and transparency around Binance’s obligations under the settlement and its broader compliance with U.S. AML and sanctions laws.
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