 ▲ Iran, Binance, Bitcoin (BTC), Virtual Assets / ChatGPT-generated image |
Binance, the world’s largest cryptocurrency exchange, has strongly denied allegations by the U.S. Senate that it was involved in laundering funds tied to Iranian terrorism, even hinting at possible legal action.
According to crypto media outlet BeInCrypto on March 7 (local time), Binance firmly rejected accusations raised by the U.S. Senate Permanent Subcommittee on Investigations that it violated sanctions related to Iran and facilitated money laundering totaling approximately $2 billion. In a letter issued under the name of CEO Richard Teng, Binance criticized the media reports forming the basis of the allegations as clearly false and described the claims as defamatory and unsupported by credible evidence. Earlier, the Senate subcommittee alleged that Binance facilitated more than $1.7 billion in cryptocurrency transactions linked to Iran-based terrorist groups and urged the Department of Justice and the Treasury Department to investigate.
Senator Richard Blumenthal and others claimed that Binance tolerated illicit fund flows connected to Yemen’s Houthi rebels and Iran’s Islamic Revolutionary Guard Corps through entities such as Hexa Whale and Blessed Trust. The Senate stated that one of Binance’s own vendors allegedly transferred $1.2 billion to Iran-related entities and that more than 1,500 Binance accounts were used by Iranian individuals in the process. Blumenthal also criticized Binance for failing to fulfill compliance improvement commitments agreed upon in 2023 and argued that it poses a threat to national security, calling for a robust investigation.
In response, Binance asserted that not a single account directly transacted with Iran-based entities and mounted a strong defense. The exchange explained that it investigated Hexa Whale and Blessed Trust at the request of law enforcement authorities and promptly removed them from the platform. It also dismissed allegations that internal investigators who reported the issue were fired, stating that any changes within the compliance team were part of routine personnel management. Teng emphasized that Binance maintains industry-leading security systems and invests substantial resources to ensure sanctions compliance.
The controversy has escalated into a political issue, with allegations of ties between Binance and President Donald Trump’s administration. Democratic senators pointed to Binance’s reported $2 billion investment in the stablecoin USD1 associated with the Trump family’s cryptocurrency venture, World Liberty Financial, raising concerns over potential collusion. They also questioned whether a fair investigation is possible, noting that Trump pardoned Binance founder Changpeng Zhao (CZ) last fall. Binance argues that such political interpretations distort substantive discussions about market regulation.
While voluntarily complying with the Senate subcommittee’s request for related records, Binance reiterated that it has committed no wrongdoing. The exchange stated that it will continue to strictly adhere to global regulatory guidelines and strive to enhance user protection and financial system transparency. The cryptocurrency market is now watching closely to see whether the U.S. Department of Justice and the Treasury Department will launch further investigations at the Senate’s request.
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