Cryptocurrency exchange Binance is once again facing scrutiny in the United States, this time following a formal inquiry launched by Democratic Senator Richard Blumenthal.
Senate Demands Records From BinanceHe wrote that the cryptocurrency exchange appears to have disregarded warnings and recommendations designed to prevent Iranian money laundering schemes, allowing approximately $1.7 billion in transfers connected to Iran.
According to the letter, these transactions allegedly supported Iranian-linked terrorist organizations and helped facilitate illicit Russian oil sales conducted through a so-called “shadow fleet” of tankers.
The requests include records related to Binance’s role in potential Iranian money laundering, its handling of sanctioned entities, and its compliance practices. The Subcommittee has asked the company to provide materials by March 6, 2026.
Alleged Findings Of Internal ReviewInternal reviews reportedly identified roughly 2,000 accounts associated with Iranian entities on the exchange, despite US banking restrictions and Binance’s public claims that it prohibits Iranian users.
Documents obtained by the media outlets further suggest that Binance was warned that Hexa Whale may have been financing terrorist groups such as Yemen’s Houthi movement.
Blumenthal’s letter alleges that Binance failed to act decisively despite these warning signs. Investigators within the company reportedly recommended stronger “know your customer” controls and suggested banning sailors tied to Russia’s shadow fleet.
However, according to the senator, those efforts were rejected. Binance allegedly granted VIP status to Hexa Whale even though the firm was suspected of using falsified documentation and its staff were said to have been directly involved in Blessed Trust’s questionable trading activity.
No Evidence Of Violations?The exchange emphasized that it has significantly strengthened its compliance systems since its 2023 settlement. According to Binance, sanctions-related exposure—measured as a share of overall trading volume—declined from 0.284% in January 2024 to 0.009% by July 2025, representing a 96.8% reduction.
At the time of writing, the exchange’s native token, BNB, traded at $616, representing a surge of 5% in the 24-hour time frame amid a slight rebound seen in the broader crypto market on Wednesday.
Featured image from OpenArt, chart from TradingView.com
