Binance Faces Scrutiny Over Iranian Trades and Crypto Money Laundering Concerns

The recent investigation into Binance's trading activities has raised serious questions about the exchange's compliance with regulations. Senator Richard Blumenthal's probe found that Binance had failed to stop sanctioned activity, allowing hundreds of millions in crypto transfers linked to Iranian entities. The exchange was warned by investigators about potential illegal activity but chose to grant VIP status to the involved accounts.

According to reports, nearly $2 billion had already moved through accounts tied to sanctioned entities before Binance took action. This incident highlights the ongoing issue of crypto money laundering, which reached an unprecedented $82 billion last year. The investigation also found that Binance's own compliance system was plagued by serious discrepancies.

Despite claims from Binance that it has enhanced its systems for complying with regulations, Senator Blumenthal remains unconvinced. He points to the nearly $2 billion in suspicious transfers that occurred before action was taken as evidence of persistent problems within the exchange.