US Senator Probes Binance Over Iran Compliance Concerns

US Senator Richard Blumenthal has sent letters to the Justice Department and FinCEN, requesting updates on the status of monitors overseeing Binance. The senator expressed concerns about the exchange's compliance program and allegations of weak anti-money laundering controls.

The inquiry comes amid reports of Iranian-linked crypto flows, which have raised questions about whether Binance's oversight structure is functioning as intended. As part of a 2023 settlement tied to sanctions and money laundering violations, Binance agreed to pay a $4.3 billion fine and accept two independent monitors to oversee its compliance reforms starting in 2024.

The senator's inquiry follows media reports alleging internal investigators at Binance were dismissed after flagging more than $1 billion in transactions linked to Iranian wallets, a claim the company disputes. The allegations have sparked concerns about the effectiveness of Binance's anti-money laundering controls and whether the exchange is adequately enforcing its sanctions compliance obligations.