🇺🇸🇮🇷 Binance says US Senator Blumenthal's claims that Iranian-linked accounts operated on the platform are false and an "attack on crypto."
Senator Blumenthal has opened a formal inquiry into Binance over allegations that $1.7 billion in crypto transactions were routed to Iran-linked entities, including Yemen’s Houthi militants, through intermediaries like Hexa Whale and Blessed Trust, a Hong Kong-based vendor. The probe follows reports that internal Binance investigators flagged the activity and were subsequently dismissed, prompting Blumenthal to demand records on transactions, compliance staff dismissals, and the use of stablecoins like USDT in potential sanctions evasion.
Binance has denied the claims, calling them "inaccurate" and "defamatory", and asserts it has strict KYC (Know-Your-Customer) and compliance procedures with no Iranian users on its platform. The company maintains that it terminated accounts linked to the alleged transfers and severed ties with Blessed Trust in January 2026. Binance also stated that its internal review found no evidence of sanctions violations, and that staff actions were based on internal protocol, not retaliation for reporting concerns.
The exchange has pushed back against media reports, with CEO Richard Teng issuing a legal letter to the Wall Street Journal demanding corrections, and accusing the publication of having a pre-existing agenda. Binance claims its sanctions-related exposure has dropped by over 96% since early 2024, and it continues to cooperate with regulators.
The Senate inquiry, initiated by Senator Richard Blumenthal (D-Conn.), remains active, with a March 6, 2026 deadline for Binance to submit requested documents. Blumenthal has criticized the exchange for allegedly ignoring internal warnings and questioned its compliance culture, especially given its 2023 $4.3 billion settlement with U.S. authorities over similar violations.
https://www.coindesk.com/business/2026/02/25/u-s-senator-opens-probe-on-binance-over-alleged-usd1-7-billion-flow-to-iranian-entities