Binance has formally responded to a U.S. congressional inquiry regarding its compliance controls. The exchange stated that recent media allegations “misrepresent both the work we do every day and the substantial progress” made in its anti-financial crime efforts. Binance reported a 97% reduction in exposure to illicit activity, detailed its large compliance workforce, and confirmed the removal of two high-risk trading entities following internal and law enforcement investigations.
Binance confirmed it responded to a letter from U.S. Senator Richard Blumenthal sent on February 24. The exchange stated the congressional inquiry was based on media reports it considers misleading.
“We take these allegations seriously,” the company stated. It asserted the claims misrepresent its daily operations and compliance progress.
The exchange emphasized its commitment to fighting financial crime with strict procedures. It bans Iranian users and prohibits VPN usage to bypass its Know Your Customer requirements.
Binance reported investing hundreds of millions of dollars in compliance programs recently. Its global compliance team exceeds 1,500 specialists in sanctions and financial crime.
The platform uses over 25 systems to detect suspicious transactions. Exposure to wallets linked to illicit activity fell from 0.284% of volume in early 2024 to 0.009% by July 2025.
In 2025, Binance processed over 71,000 law enforcement requests globally. It assisted in seizing more than $752 million in illegal funds over three years, with $579 million for U.S. authorities.
Its collaborations with the Beacon Network and T3 Financial Crime Unit froze over $300 million in suspected illegal funds. The company highlighted these partnerships as part of its proactive compliance efforts.
The congressional letter examined two trading entities named Hexa Whale and Blessed Trust. These had been linked to wallet addresses potentially involved in financing terrorism.
Binance began reviewing these cases in 2025 after law enforcement requests. It removed the Hexa Whale account in August 2025 and offboarded Blessed Trust in early 2026.
