TLDR
- A formal Senate inquiry targets Binance regarding potential sanctions violations connected to Iran.
- Senator Blumenthal demands documentation concerning $1.7 billion in transactions allegedly tied to Iranian entities.
- Media reports prompted the investigation, citing internal compliance reviews and employee terminations.
- Binance rejects the accusations, emphasizing rigorous customer verification protocols.
- The platform confirmed terminating accounts associated with Blessed Trust during January.
U.S. Senator Richard Blumenthal has initiated a formal investigation targeting Binance over potential sanctions violations. The senator demands comprehensive documentation regarding transactions allegedly connected to Iranian organizations. This inquiry emerges following media coverage that highlighted internal compliance findings and personnel changes at the cryptocurrency platform.
Committee Demands Documentation on Transaction Records
Serving as a senior Democrat on the Senate Homeland Security Committee, Blumenthal delivered a letter to Binance executives this Tuesday. His correspondence requests details about $1.7 billion in transactions allegedly associated with Iran-connected entities. The New York Times published findings indicating internal compliance teams discovered these transactions prior to their termination.
The senator’s letter specifically requests documentation regarding interactions with two Hong Kong-based companies connected to the questioned transfers. Additional requests include materials related to the removal and suspension of compliance personnel. Blumenthal’s correspondence states that Binance appeared to disregard cautionary signals about potential Iranian money laundering operations.
Reports indicate one account belonged to Blessed Trust, a Hong Kong-registered entity that maintained vendor relations with Binance. A company representative informed journalists that the platform terminated these accounts during January. The spokesperson confirmed Binance severed business ties with Blessed Trust during the same period.
Blumenthal addressed his correspondence to Richard Teng, serving as Binance co-chief executive. The senator seeks complete records documenting the company’s compliance frameworks. He additionally requested internal correspondence pertaining to the questioned transactions.
Exchange Refutes Claims While Emphasizing Compliance Protocols
Binance issued a denial statement to CoinDesk addressing the allegations. A company spokesperson declared the New York Times’ previous coverage contained inaccuracies. The representative emphasized that Binance implements rigorous customer verification systems and prohibits Iranian account holders.
The exchange disputed assertions regarding the dismissal of investigators based on their research findings. Company representatives characterized reporting from multiple news organizations as inaccurate. Binance maintained its position challenging what it termed misleading accusations.
Binance founder Changpeng Zhao entered a guilty plea during November 2023 concerning anti-money-laundering violations. His admission acknowledged the platform permitted transactions from users in sanctioned nations. The settlement required $4.3 billion in financial penalties and withdrawal from U.S. operations.
Zhao subsequently completed a four-month incarceration period related to these charges. President Donald Trump granted clemency following his imprisonment. Binance published a recent blog entry stating its “sanctions-related exposure is minimal.”
Rachel Conlan, serving as another company spokesperson, acknowledged an active internal review. She informed the Times that Binance plans to deliver a comprehensive report to the U.S. Justice Department by February 25.
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