A U.S. senator has launched a formal investigation into Binance after reports claimed the crypto giant processed nearly $1.7 billion in transactions tied to sanctioned groups.
Senator Richard Blumenthal announced the Senate inquiry following media reports that Binance allegedly handled transactions connected to Iranian entities and Russia’s so-called “shadow fleet” of oil tankers. The exchange is the largest in the world by trading volume.
The inquiry focuses on Binance’s compliance practices. In a letter sent to CEO Richard Teng, Blumenthal demanded documents explaining how the transactions were allowed to happen and whether internal investigators were sidelined or dismissed after raising red flags.
Reports from major U.S. outlets claimed Binance investigators identified more than 1,500 accounts accessed from Iran. Funds were allegedly traced through intermediaries to entities linked to Iran’s Islamic Revolutionary Guard Corps and to payments involving Russian ships accused of evading sanctions.
Blumenthal said Binance has a history of compliance failures. He accused the company of ignoring warning signs and failing to fully meet its anti-money-laundering obligations, even after reaching a 2023 settlement with U.S. authorities that required stronger oversight.
The senator also raised concerns about reports that internal compliance staff were suspended or fired after flagging suspicious activity. He said this raises serious questions about the company’s internal culture and commitment to following the law.
Binance has denied any wrongdoing. The company said it has reduced its exposure to sanctioned entities by about 96% between early 2024 and mid-2025. It also said sanctions-linked activity now represents only a small fraction of total trading volume.
The investigation adds new pressure on Binance as U.S. lawmakers continue to scrutinize the crypto industry. The Senate inquiry could lead to further hearings or regulatory action depending on what the documents reveal.
