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Senate Opens Binance Inquiry Over Alleged Iran-Linked Crypto Flows

Blumenthal set a March 6 deadline for compliance files to assess post‑settlement controls.

Overview

  • Sen. Richard Blumenthal launched a Permanent Subcommittee on Investigations probe citing reports that up to $1.7 billion in 2024–2025 transfers moved through Binance to Iran-linked networks.
  • His Feb. 24 letter to co‑CEO Richard Teng seeks monitoring procedures, Iran‑related account records, internal investigation files, and communications about dismissed or suspended compliance staff.
  • Media accounts referenced by the senator describe two Hong Kong entities, Hexa Whale and Blessed Trust, as alleged intermediaries and report records indicating Binance employees accessed a Blessed Trust trading account.
  • Additional reporting says Binance investigators flagged roughly 2,000 accounts tied to Iranian entities and urged tougher KYC measures, which were allegedly rejected before some staff were sidelined or fired.
  • Binance denies sanctions violations, says an internal review found no breaches, cites a roughly 97% drop in measured exposure since January 2024, and says it provided its findings to the DOJ on Feb. 25.