Democrat Senator Launches $1.7B Iran Sanctions Probe Into Binance
Senator Richard Blumenthal has launched a preliminary Senate inquiry into Binance after reports alleged the exchange enabled $1.7 billion in transactions linked to Iranian entities, some tied to sanctioned groups and Russia’s oil trade. Internal Binance investigators reportedly traced thousands of accounts to Iranian connections, despite Binance's claimed ban on Iranian users. Two Hong Kong-based partners, Hexa Whale and Blessed Trust, were identified as intermediaries. The Wall Street Journal reported that compliance staff who raised concerns were suspended or fired. Binance denied these allegations, accused the WSJ of defamation, and claims it promptly removed suspicious accounts and ceased relations with Blessed Trust. Binance asserts its sanctions exposure is minimal and it reported suspicious activity, while highlighting improvements to its compliance. The inquiry comes after Binance pleaded guilty in 2023 to U.S. anti-money-laundering and sanctions violations, paying billions in penalties, and after founder Changpeng Zhao was sentenced to prison then pardoned by former President Trump. Blumenthal requested extensive Binance records by March 2026 and cited concerns that Binance knowingly abetted illicit transactions and ignored compliance warnings.
