Richard Blumenthal, the senior Democratic senator from Connecticut, is investigating Binance, the biggest crypto change by buying and selling quantity, over allegations that it enabled Iranian cash laundering schemes and sanctions evasion linked to Russian oil commerce.
In a letter despatched Tuesday to Binance CEO Richard Teng, Blumenthal pointed to studies from the Wall Road Journal, the New York Instances, and Fortune that Binance companions Hexa Whale and Blessed Belief allegedly acted as intermediaries for illicit transactions tied to Iranian authorities entities, terrorist teams together with the Houthis, and Russia’s shadow oil fleet.
Studies indicated that the change maintained 2,000 Iranian-linked accounts and allowed practically $2 billion in transfers regardless of inside warnings, whereas suspending or firing compliance workers who raised considerations.
Blumenthal additionally questioned Binance’s compliance following its 2023 responsible plea alongside founder Changpeng Zhao, and its relationship with World Liberty Monetary and envoy Steve Witkoff, suggesting political ties might have contributed to regulatory aid, together with lawsuit dismissal and Zhao’s pardon.
Blumenthal requested information from Binance concerning the suspected transactions and paperwork associated to the usage of crypto property reminiscent of Tether and USD1 in cash laundering or terrorist financing.
He additionally sought information explaining the dismissal of compliance workers who had recognized potential violations.
The senator set a March 6 deadline for the change to supply the requested information.
The probe provides to the change’s ongoing regulatory challenges. In 2023, the corporate entered a responsible plea for processing greater than $1 billion in transfers to sanctioned entities, paying $4.3 billion in penalties and accepting an unbiased compliance monitor.
Zhao, the change’s former chief govt, stepped down following these authorized troubles. He acquired a presidential pardon from Donald Trump final October after finishing a jail sentence.
The change has disputed the newest allegations, stating its publicity to Iran-linked exercise has fallen by practically 97% since January 2024 and denying that workers had been terminated over compliance issues.
The report have to be clear.
No sanctions violations had been discovered, no investigators had been fired for elevating considerations, and Binance continues to satisfy its regulatory commitments.
We’ve requested for corrections to latest reporting. pic.twitter.com/glA9bdGaw1
— Richard Teng (@_RichardTeng) February 16, 2026
