U.S. Senator Richard Blumenthal has opened a preliminary inquiry into Binance following allegations the exchange allowed $1.7 billion in transactions tied to Iranian entities and Russia’s sanctions-evading oil trade. The investigation stems from a report claiming internal investigators found transfers to intermediaries linked to Iran’s Islamic Revolutionary Guards Corps and Yemen’s Houthi militants. Binance has denied wrongdoing, accusing the reporting outlet of defamatory claims and stating its sanctions exposure is minimal.
U.S. Senator Richard Blumenthal has opened a preliminary inquiry into Binance following reports the cryptocurrency exchange allowed $1.7 billion in transactions tied to Iranian entities. The senator cited allegations that internal investigators uncovered transfers to intermediaries connected to Iran’s Islamic Revolutionary Guards Corps.
The probe follows reporting alleging that two Hong Kong-based partners, Hexa Whale and Blessed Trust, acted as conduits for some transactions. According to the report, roughly 2,000 accounts associated with Iranian entities were identified despite Binance‘s ban on Iranian users.
Binance CEO Richard Teng has denied the allegations. In a statement, he accused the media of publishing “defamatory claims” about the company’s compliance program.
In a legal letter, Binance said it wants the “false information” corrected immediately. The company stated it detected and reported suspicious activity and found no evidence of violations in its own review.
The latest allegations come after Binance pleaded guilty in 2023 to violating U.S. anti-money-laundering laws and sanctions. The company agreed to pay $4.3 billion in penalties and exit the U.S. market.
In a letter to Teng, Blumenthal wrote that “Binance appears to have ignored warnings and recommendations to prevent Iranian money laundering schemes.” He cited reports that internal compliance staff found the Hong Kong partners facilitated laundering.
The senator also pointed to Binance’s ties to World Liberty Financial, a cryptocurrency venture associated with the family of President Donald Trump. He suggested the company has sought to influence policymakers while facing scrutiny.
Blumenthal requested that Binance provide extensive records by March 6, 2026. The requested documents include those related to the activities of the named partners and internal reports concerning Iranian and Russian-linked accounts.
