Crypto World
11 US Senators Urge Probe Into Binance’s AML Controls
A group of 11 US senators has asked federal authorities to investigate whether crypto exchange Binance is complying with US sanctions and Anti-Money Laundering (AML) requirements, citing recent reports.
In a letter on Friday to Treasury Secretary Scott Bessent and Attorney General Pamela Bondi, the lawmakers urged a “prompt, comprehensive review” of the exchange’s compliance controls and its adherence to settlement agreements reached in 2023.
The senators pointed to allegations that approximately $1.7 billion in digital assets flowed through Binance to Iranian entities linked to terrorism, including groups connected to the Houthis and the Islamic Revolutionary Guard Corps. Investigators also reportedly identified more than 1,500 accounts accessed by users in Iran and potential activity connected to Russian sanctions evasion.
According to the letter, some Binance compliance staff who uncovered suspicious transactions were later dismissed, and law enforcement agencies said the exchange had become less cooperative in providing customer information.
Related: Binance stablecoin reserves have sunk 19% since November
Senators warn Binance products could enable sanctions evasion
Senators Chris Van Hollen and Ruben Gallego, joined by Angela D. Alsobrooks, Andy Kim, Raphael Warnock, Tina Smith, Catherine Cortez Masto, Mark R. Warner, Elizabeth Warren, Jack Reed and Lisa Blunt Rochester, signed the letter.
They also raised concerns about newer products, including payment cards launched in parts of the former Soviet Union and partnerships tied to stablecoin initiatives, which they warned could facilitate sanctions evasion.
The senators asked the agencies to report by March 13 on any steps taken to examine the exchange’s conduct.
On Tuesday, Senator Richard Blumenthal, ranking member of the Senate Permanent Subcommittee on Investigations, also launched a congressional inquiry into Binance. He sent a letter to Binance CEO Richard Teng requesting documents and internal records related to the exchange’s sanctions controls.
Related: Binance confirms employee targeted as three arrested in France break-in
Binance denies Iran-linked transaction claims
In a statement to Cointelegraph this week, Binance rejected allegations that its platform facilitated illicit transactions, saying it identified and reported suspicious activity to authorities and does not allow Iranian users. A company spokesperson said recent media coverage misrepresented the exchange’s operations.
Last week, the exchange also disputed a report claiming it processed more than $1 billion in Iran-linked transfers and denied dismissing investigators over the issue.
Teng has also criticized a Wall Street Journal report alleging $1.7 billion in Iran-related activity, calling it defamatory and seeking a retraction.
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