US Senator Richard Blumenthal has questioned authorities overseeing Binance about its compliance with anti-money laundering laws and sanctions under a 2023 monitoring deal. His letter cites concerns about “dangerously lax” AML prevention, following reports of $1 billion in Iran-linked transactions. The inquiry adds to ongoing scrutiny of Binance‘s ties to former President Donald Trump, who pardoned its ex-CEO.
Connecticut Senator Richard Blumenthal questioned US authorities responsible for overseeing Binance about whether the company is complying with anti-money laundering laws and sanctions under its 2023 court-imposed monitoring program. He sent letters to the Justice Department and the US Treasury’s Financial Crimes Enforcement Network (FinCEN) asking for details on Binance‘s compliance.
Fortune reported that DOJ and FinCEN officials responsible for overseeing the exchange as part of the deal would not comment. Binance and its former CEO Changpeng “CZ” Zhao reached a deal in 2023, in which the exchange would pay $4.3 billion to settle civil regulatory enforcement actions.
CZ pleaded guilty to one felony charge as part of that agreement. The deal also required that Binance be subject to monitoring and reporting requirements by US officials.
Blumenthal’s letter said he was concerned about “mounting allegations of dangerously lax anti-money laundering prevention by Binance.” The letter followed reports that Binance was under scrutiny regarding US sanctions imposed on Iran.
The crypto exchange reportedly fired individuals responsible for telling Binance executives that $1 billion flowed through the platform to entities tied to Iran. A spokesperson for the exchange has denied the claims.
In February, a group of senators urged Treasury Secretary Scott Bessent and former Attorney General Pamela Bondi to complete a “prompt, comprehensive review” of Binance‘s compliance controls. Some US lawmakers have alleged that connections between Binance and Donald Trump create conflicts of interest for the US President and his family’s crypto businesses.
In March 2025, a United Arab Emirates-based entity purchased a $2 billion stake in Binance using the USD1 stablecoin issued by World Liberty Financial, the company co-founded by Trump and his sons. Trump also pardoned Binance’s former CEO, CZ, in October 2025 after he served four months in prison as part of his 2023 guilty plea.
