Senator Raises Concerns Over $1.7B in Alleged Binance Transfers

Senate probe into Binance over alleged $1.7B Iran-linked transfers revives scrutiny of its past AML violations and U.S. standing.

Binance is facing new questions from U.S. lawmakers after reports linked $1.7 billion in transactions to Iranian entities. Senator Richard Blumenthal has opened an inquiry into how the exchange handled those transfers. The request for internal records places Binance back under political and regulatory pressure.

Blumenthal Seeks Internal Records From Binance Over Sanctions Concerns

U.S. Senator Richard Blumenthal, a senior Democrat on the Senate Permanent Subcommittee, opened an investigation into alleged sanctions violations by Binance. According to The New York Times, the inquiry follows claims that internal investigators identified $1.7 billion in transfers connected to Iranian entities.

Blumenthal sent a letter to Binance co-CEO Richard Teng on Tuesday. He requested records related to two Hong Kong entities flagged as sources of transfers to Iran. The Democrat also asked for documents on employees who were suspended or fired after raising concerns about the transactions.

One of the accounts involved reportedly belonged to a Hong Kong company called Blessed Trust, which worked as a vendor for Binance. Investigators inside the company raised red flags about the transfers, but some of them were later suspended or dismissed.

Binance denied the accusations and said it did not break any rules. A company spokeswoman said Binance detected and reported suspicious activity, calling it proof that internal controls functioned as intended. According to a separate company review, there were no sanctions violations. 

The company said that in January, it severed its connection with Blessed Trust and deleted accounts linked to transactions in Iran. Representatives also stated that no staff members were disciplined for voicing concerns about compliance.

Binance’s 2023 AML Breach Casts Shadow Over Current Inquiry

In 2023, Binance admitted it broke U.S. anti-money laundering laws. The exchange allowed users in sanctioned countries, including Iran, to trade on its platform. As part of a settlement, Binance paid $4.3 billion in fines and agreed to step away from U.S. market operations. Founder Changpeng Zhao later served four months in prison for his involvement.

After Donald Trump returned to office, he pardoned Zhao in October. This decision was seen as removing a key barrier to the firm’s possible re-entry into the U.S. market. Binance also maintains business ties with World Liberty Financial, a crypto company founded by Trump and his sons.

U.S. regulators are still keeping close watch on large crypto exchanges, especially when cross-border transactions are involved. Links to sanctioned entities can bring serious legal and political consequences. Findings from this inquiry may influence how U.S. officials view Binance in the months ahead.

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