Eleven Democratic U.S. Senators have called on the Departments of Justice and Treasury to conduct an immediate and thorough investigation into the cryptocurrency exchange Binance for alleged illegal financial activities involving Iran and potential violations of a 2023 federal settlement. Led by Senator Mark Warner and signed by Ranking Member Elizabeth Warren and others, the letter cites evidence uncovered by Binance compliance officers last year indicating that approximately $1.7 billion in digital assets were transferred to Iranian entities, including Iran-backed Houthi rebels and the Islamic Revolutionary Guard Corps. At one point, a Binance vendor reportedly moved $1.2 billion to parties linked to Iran. Additionally, over 1,500 Binance accounts were accessed by Iranian users, and Russian actors used the platform to evade sanctions.
The senators expressed concern that employees who flagged these suspicious transactions were dismissed and that Binance’s cooperation with law enforcement has diminished, potentially breaching the company’s 2023 settlement agreement. Under that agreement, Binance paid over $4 billion in fines for violations of U.S. sanctions and anti-money laundering laws and committed to stringent reforms. The letter also highlights recent business ties between Binance and former President Donald Trump’s family, noting Binance’s promotion of the USD 1 stablecoin issued by World Liberty Financial, which involves financial interests of the Trump family. Furthermore, Trump reportedly pardoned Binance founder Changpeng Zhao, who had been penalized for inadequate anti-money laundering controls.
Beyond Iran, the senators raised concerns about Binance launching crypto-related payment cards in former Soviet regions and initiating stablecoin and digital currency projects with Kyrgyzstan, which could facilitate evasion of Russian sanctions. Binance has denied these allegations, affirming its ongoing efforts to detect and report suspicious activities and its commitment to fulfilling responsibilities under the 2023 settlement. The Senate has requested responses from the Departments of Justice and Treasury by March 13.
Source: bitcoinmagazine
