Binance has formally rejected a February inquiry from 11 U.S. senators, disputing allegations that it enabled transactions to Iranian entities and contesting reports about employee dismissals. In a letter to Senators Richard Blumenthal and Ron Johnson, the exchange said the probe relied on reporting it called demonstrably false and unsupported by credible evidence, singling out articles in the Wall Street Journal, The New York Times and Fortune.
Those outlets reported that Binance fired staff who had flagged more than $1 billion in crypto flows to entities tied to Iran, naming firms such as Hexa Whale and Blessed Trust. Binance said it conducted internal investigations after law enforcement inquiries, removed the named entities from its platform, and believes no Binance account transacted directly with Iran-based entities.
On the question of employee departures, the company said some people resigned and one employee was terminated for improperly disclosing internal user information. Binance emphasized it enforces strict privacy protections and follows its labor and employment policies when addressing violations of internal rules.
The senators’ letter also asked whether the Treasury Department and the Department of Justice planned to investigate Binance, requesting responses from Treasury Secretary Scott Bessent and Attorney General Pamela Bondi by March 13. At the time Binance sent its reply, neither official had publicly commented.
Background context: in 2023 Binance agreed to a $4.3 billion settlement over alleged sanctions and anti‑money‑laundering violations. Former CEO Changpeng “CZ” Zhao pleaded guilty to a felony, resigned, and served a four-month prison term; he was pardoned by President Donald Trump in October, which legally clears the way for a possible return to a leadership role, though Zhao has said he does not intend to resume the CEO position.
Separately, lawmakers have raised questions about 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 pointed to the deal because World Liberty Financial is reportedly backed by the president and his sons.
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