US Senator Probes Binance Over Alleged Sanctions Violations and Compliance Issues

US Senator Richard Blumenthal is investigating Binance, the largest cryptocurrency exchange by trading volume, over allegations that it enabled Iranian money laundering schemes and sanctions evasion linked to Russian oil trade.

The probe, which was revealed in a letter sent to Binance CEO Richard Teng, highlights concerns over Binance's compliance issues. Reports from various news outlets indicate that Binance partners Hexa Whale and Blessed Trust allegedly acted as intermediaries for illicit transactions tied to Iranian government entities, terrorist groups, and Russia's shadow oil fleet.

The exchange maintained 2,000 Iranian-linked accounts and allowed nearly $2 billion in transfers despite internal warnings. Blumenthal also questioned Binance's compliance following its 2023 guilty plea alongside founder Changpeng Zhao, as well as its relationship with World Liberty Financial and envoy Steve Witkoff. He requested records from Binance regarding the suspected transactions and documents related to the use of crypto assets such as Tether and USD1 in money laundering or terrorist financing.

The senator set a March 6 deadline for the exchange to produce the requested records. This investigation adds to Binance's ongoing regulatory challenges, which include its 2023 guilty plea for processing more than $1 billion in transfers to sanctioned entities.