Binance Responds to U.S. Senate: No Direct Crypto Transfers Found to Iranian Entities

TLDR

• The world’s largest crypto exchange informed U.S. senators it discovered no direct cryptocurrency transactions involving Iranian entities on its platform
• Binance reported finding only indirect connections to potentially Iran-associated wallets, which have since been terminated
• The company labeled news coverage from major outlets including NYT, WSJ, and Fortune as “demonstrably false” and defamatory
• Following internal reviews, accounts associated with Hexa Whale and Blessed Trust were terminated
• Congressional scrutiny intensifies amid questions about Trump administration connections and a major stablecoin transaction

The world’s leading cryptocurrency exchange, Binance, has issued an official response to a United States Senate investigation, asserting that its comprehensive review uncovered no instances of direct cryptocurrency transfers to Iranian-connected entities from any platform account.

Dated March 6, the formal correspondence addressed Sen. Richard Blumenthal’s Permanent Subcommittee on Investigations and Sen. Ron Johnson. The inquiry originated from a coalition of 11 senators who initiated the investigation in February.

The congressional investigation emerged following media allegations suggesting Binance had facilitated over $1 billion in cryptocurrency transactions connected to Iran-affiliated organizations. The exchange has categorically rejected these characterizations.

According to Binance’s official statement, the company’s comprehensive internal audit identified only indirect connections to digital wallets that potentially had Iranian associations. The exchange confirmed these accounts have been permanently removed from its platform.

Two specific entities were highlighted in Binance’s investigation: Hexa Whale and Blessed Trust. The exchange disclosed that Hexa Whale’s account was terminated in August of the previous year, while Blessed Trust was removed in January following the completion of thorough investigations.

The company’s internal review was initiated following contact from law enforcement agencies last April. Authorities supplied Binance with a roster of external wallet addresses suspected of potential links to terrorist financing activities.

Binance emphasized its complete cooperation with authorities, supplying comprehensive user records and detailed transaction information to support the investigation.

Exchange Challenges Mainstream Media Narrative

The cryptocurrency platform mounted a strong defense against the media coverage that triggered the Senate investigation. Binance explicitly characterized reporting from the New York Times, Wall Street Journal, and Fortune as “demonstrably false” and defamatory in multiple significant aspects.

The published reports had claimed that the exchange dismissed employees who internally flagged concerns regarding the Iran-connected transactions. Binance has firmly disputed these allegations.

According to the company, the majority of staff departures connected to this matter were voluntary resignations. While one employee was indeed terminated, Binance clarified that the dismissal resulted from breaching company protocols by sharing confidential user information with external parties.

“When there is credible risk information, Binance investigates, mitigates, offboards accounts, and reports to appropriate authorities,” the letter stated.

Congressional Investigation Unfolds Against Backdrop of Political Connections

The senators’ correspondence to Treasury Secretary Scott Bessent and Attorney General Pamela Bondi established a March 13 deadline for responding on whether federal investigations into Binance would proceed. As of Friday, neither official had issued public statements on the matter.

The exchange has a documented regulatory history in the United States. In 2023, the company settled violations related to sanctions and anti-money laundering regulations for $4.3 billion. Former chief executive Changpeng Zhao resigned and entered a guilty plea to felony charges, subsequently serving four months in federal custody.

President Trump granted Zhao a pardon in October, effectively eliminating legal restrictions preventing his return to Binance leadership. Despite this, Zhao has publicly stated he has no intentions of resuming the CEO position.

Congressional attention toward Trump’s connections with Binance has intensified following a UAE-based firm, MGX, utilizing the USD1 stablecoin — issued by World Liberty Financial, a venture backed by Trump and his sons — to finalize a $2 billion investment in the exchange. Several legislators have characterized this arrangement as presenting potential conflicts of interest.

As of March 6, the Senate subcommittee has not publicly announced additional measures following receipt of Binance’s formal response.