A gaggle of 11 US senators has requested federal authorities to research whether or not crypto trade Binance is complying with US sanctions and Anti-Cash Laundering (AML) necessities, citing current experiences.
In a letter on Friday to Treasury Secretary Scott Bessent and Lawyer Basic Pamela Bondi, the lawmakers urged a “immediate, complete evaluation” of the trade’s compliance controls and its adherence to settlement agreements reached in 2023.
The senators pointed to allegations that roughly $1.7 billion in digital belongings flowed by means of Binance to Iranian entities linked to terrorism, together with teams linked to the Houthis and the Islamic Revolutionary Guard Corps. Investigators additionally reportedly recognized greater than 1,500 accounts accessed by customers in Iran and potential exercise linked to Russian sanctions evasion.
In line with the letter, some Binance compliance workers who uncovered suspicious transactions have been later dismissed, and regulation enforcement companies stated the trade had change into much less cooperative in offering buyer data.
Associated: Binance stablecoin reserves have sunk 19% since November
Senators warn Binance merchandise may allow sanctions evasion
Senators Chris Van Hollen and Ruben Gallego, joined by Angela D. Alsobrooks, Andy Kim, Raphael Warnock, Tina Smith, Catherine Cortez Masto, Mark R. Warner, Elizabeth Warren, Jack Reed and Lisa Blunt Rochester, signed the letter.
Additionally they raised considerations about newer merchandise, together with fee playing cards launched in components of the previous Soviet Union and partnerships tied to stablecoin initiatives, which they warned may facilitate sanctions evasion.
The senators requested the companies to report by March 13 on any steps taken to look at the trade’s conduct.
On Tuesday, Senator Richard Blumenthal, rating member of the Senate Everlasting Subcommittee on Investigations, additionally launched a congressional inquiry into Binance. He despatched a letter to Binance CEO Richard Teng requesting paperwork and inner data associated to the trade’s sanctions controls.
Associated: Binance confirms employee targeted as three arrested in France break-in
Binance denies Iran-linked transaction claims
In a press release to Cointelegraph this week, Binance rejected allegations that its platform facilitated illicit transactions, saying it recognized and reported suspicious exercise to authorities and doesn’t enable Iranian customers. An organization spokesperson stated current media protection misrepresented the trade’s operations.
Final week, the trade additionally disputed a report claiming it processed greater than $1 billion in Iran-linked transfers and denied dismissing investigators over the difficulty.
Teng has additionally criticized a Wall Street Journal report alleging $1.7 billion in Iran-related exercise, calling it defamatory and looking for a retraction.
Journal: How crypto laws changed in 2025 — and how they’ll change in 2026
(*11*)
Cointelegraph by Amin Haqshanas 11 US Senators Urge Probe Into Binance’s AML Controls cointelegraph.com 2026-02-28 13:37:23
Source link
