US Senator Probes Binance Over Alleged Iran, Russia Sanctions Breaches

A senior US lawmaker launched a congressional inquiry into crypto trade Binance following studies that the platform processed about $1.7 billion in transactions tied to sanctioned Iranian entities and Russia’s oil “shadow fleet.”

On Tuesday, Senator Richard Blumenthal, rating member of the Senate Everlasting Subcommittee on Investigations, sent a letter to Binance CEO Richard Teng requesting paperwork and inner data associated to the trade’s sanctions controls and compliance practices.

Citing reporting from the Wall Avenue Journal, New York Occasions and Fortune, Blumenthal stated Binance compliance workers had recognized two companion entities, together with Hexa Whale and Blessed Belief, as intermediaries enabling commerce with Iranian government-linked organizations. Inner investigators additionally reportedly traced transfers to wallets related to Iran’s Islamic Revolutionary Guards Corps and funds to crews working tankers used to bypass sanctions on Russian oil exports.

“Binance seems to have ignored clear warning indicators, knowingly allowed illicit accounts to function, and even supplied hands-on assist to entities engaged in cash laundering,” the senator stated. He requested communications, account data and inner compliance studies, together with any supplies associated to customers linked to Iran and members in Russian sanction-evasion networks.

Associated: Binance stablecoin reserves have sunk 19% since November

Binance denies sanctions allegations

A Binance spokesperson advised Cointelegraph that the latest allegations are inaccurate, saying that the platform recognized and reported suspicious exercise. The trade disputed earlier media protection and maintained that it doesn’t enable Iranian customers on the platform.

“Over the final a number of years, Binance has undergone one of many trade’s strongest compliance transformations, which has allowed us to realize our present regulatory milestones,” the spokesperson stated.

Binance has repeatedly pushed again towards the latest media studies. Final week, the trade denied a Fortune report alleging it processed over $1 billion in Iran-linked transactions and dismissed investigators who raised issues.

On Tuesday, Binance CEO Richard Teng additionally criticized a Wall Street Journal report alleging $1.7 billion in Iran-linked transfers, calling it defamatory and demanding a retraction. In a weblog publish Monday, Binance stated it has sharply cut exposure to sanctioned and high-risk jurisdictions, claiming a roughly 97% drop since January 2024 to about 0.009% of trade quantity.

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Senate probe questions Binance compliance

The inquiry follows Binance’s 2023 settlement with US authorities, during which the corporate agreed to pay $4.3 billion for Anti-Money Laundering (AML) and sanctions violations. Founder Changpeng Zhao stepped down as CEO and later served a four-month jail sentence. Binance additionally agreed to be monitored and pledged to strengthen compliance controls.