Binance Denies Media Allegations, Highlights Compliance Efforts Amid Senate Inquiry

Binance has issued a formal response to a Senate inquiry led by U.S. Senator Richard Blumenthal, addressing allegations made by various media outlets regarding its compliance practices and handling of illicit activity.

The exchange giant has emphasized its commitment to supporting law enforcement operations worldwide, highlighting the significant progress it has made in detecting and preventing illicit transactions. In 2025, Binance processed over 71,000 law enforcement requests globally, helping to seize more than $752 million in illicit assets, with nearly $579 million recovered for U.S. agencies.

Blockchain analytics data shows a notable decrease in Binance's exposure to illicit wallets, dropping from 0.284% to just 0.009% of total exchange volume between January 2024 and July 2025, representing a decline of nearly 97%. The company has also frozen over $300 million in its T3 Financial Crime Unit, which operates in real-time to prevent tainted funds from moving further.

Regarding the specific cases mentioned in the inquiry, Binance clarified that both Hexa Whale and Blessed Trust were offboarded following law enforcement inquiries and internal reviews. The company denied allegations of 2,000 Iranian-linked accounts, attributing the claim to its ongoing efforts to detect VPN circumvention rather than any confirmed user base.

Binance has maintained a strong commitment to compliance improvements, law enforcement cooperation, and user protection across the global crypto ecosystem, reaffirming this stance in its response to the Senate inquiry.