Richard Blumenthal, the senior Democratic senator from Connecticut, is investigating Binance, the most important crypto trade 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 Avenue Journal, the New York Occasions, 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.
Stories indicated that the trade maintained 2,000 Iranian-linked accounts and allowed almost $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 could have contributed to regulatory aid, together with lawsuit dismissal and Zhao’s pardon.
Blumenthal requested data from Binance relating to the suspected transactions and paperwork associated to the usage of crypto belongings akin to Tether and USD1 in cash laundering or terrorist financing.
He additionally sought data explaining the dismissal of compliance workers who had recognized potential violations.
The senator set a March 6 deadline for the trade to provide the requested data.
The probe provides to the trade’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 trade’s former chief government, stepped down following these authorized troubles. He obtained a presidential pardon from Donald Trump final October after finishing a jail sentence.
The trade has disputed the newest allegations, stating its publicity to Iran-linked exercise has fallen by almost 97% since January 2024 and denying that workers have been terminated over compliance issues.
The report have to be clear.
No sanctions violations have been discovered, no investigators have 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
