Senate Democrat Questions Binance Over Iran Crypto Flows and Russia Trade

TLDR

Table of Contents

Blumenthal sent a letter to Binance CEO Richard Teng on February 24, 2026
Reports cite $1.7B in crypto transfers linked to Iranian entities
Binance denies violations and reports a 96.8% drop in sanctions exposure
Inquiry focuses on Iran and Russia sanctions and prior AML failures

US Senator probes Binance over alleged Iran and Russia sanctions violations, raising fresh scrutiny of the world’s largest crypto exchange.

Senator Richard Blumenthal, a senior Democrat from Connecticut, has opened an inquiry into Binance. The move centers on alleged crypto transfers linked to Iranian entities and Russia’s oil trade.

Blumenthal sent a letter on February 24, 2026, to Binance CEO Richard Teng. He requested records and internal documents related to suspected sanctions breaches.

Letter Seeks Details on Iran and Russia Links

Blumenthal’s letter refers to reports from major media outlets. These reports claim Binance accounts enabled about $1.7 billion in crypto transfers.

The funds were allegedly routed through Hong Kong entities, including Hexa Whale and Blessed Trust. These firms were named as possible intermediaries in the transactions.

The letter states that some transfers may have involved Iranian government entities. It also mentions alleged links to groups such as Yemen’s Houthi militants.

Blumenthal asked for documents on the use of crypto assets like Tether and USD1. He also requested compliance records tied to Russian oil trade networks.

His office cited reports that Binance maintained around 2,000 Iranian-linked accounts. The reports also said internal investigators raised concerns during 2024 and 2025.

Compliance History and Internal Actions

Binance pleaded guilty in 2023 to anti-money-laundering failures. The company paid billions of dollars in penalties as part of a settlement with US authorities.

The senator’s letter questions Binance’s compliance progress since that plea. It also asks about internal investigations that were reportedly dismantled.

Some media reports said compliance staff were suspended or dismissed. These actions allegedly followed internal warnings about sanctions exposure.

Blumenthal requested information on any staff terminations tied to sanctions reviews. He also asked whether political developments affected regulatory outcomes.

The letter refers to the 2025 pardon of Binance founder Changpeng Zhao by President Donald Trump. It asks whether that decision influenced enforcement actions.

Binance Denies Allegations

Binance has denied breaching sanctions in the cases cited. The company said it removed linked accounts and found no violations.

According to statements reported by Moneycheck, Binance demanded a retraction of certain claims. It also threatened legal action over what it called inaccurate reporting.

Moneycheck reported that Binance shared internal compliance metrics. The company said it reduced sanctions exposure by 96.8%.

Binance stated that direct exposure to four Iranian exchanges fell from $4.19 million to about $110,000. It also denied retaliating against compliance staff.

The company said some employee departures were linked to confidentiality breaches. It maintained that its compliance program was properly represented.

Scope of the Senate Inquiry

The current action appears to be a targeted inquiry led by Blumenthal. There is no formal bipartisan committee probe at this stage.

Blumenthal serves on the Senate Homeland Security Committee. His inquiry focuses on sanctions compliance and foreign financial flows.

Other Democrats have raised concerns about crypto regulation in recent months. Some have questioned ties between crypto firms and political figures.

The letter also references Binance’s reported connections to World Liberty Financial. It seeks clarity on any relationships involving US political actors.

Binance has not announced any change in operations following the letter. Further steps may depend on the company’s response and any follow-up requests.