A senior U.S. lawmaker has launched a congressional inquiry into cryptocurrency exchange Binance following reports that the platform may have processed billions of dollars in transactions linked to sanctioned Iranian entities and Russia’s oil “shadow fleet.”
Senator Richard Blumenthal, the ranking member of the Senate Permanent Subcommittee on Investigations, sent a formal letter to Binance CEO Richard Teng requesting internal documents and records tied to the company’s sanctions compliance and Anti-Money Laundering (AML) controls.
The inquiry follows media investigations by major outlets that alleged Binance processed approximately $1.7 billion in transactions connected to Iranian organizations and networks helping Russia bypass oil export sanctions.
Allegations of Iran-Linked Transactions and Russia’s Oil “Shadow Fleet”
According to reports cited by Blumenthal, Binance compliance staff had identified two partner entities — Hexa Whale and Blessed Trust — as intermediaries allegedly facilitating trade with organizations linked to the Iranian government. Internal investigations reportedly traced crypto transfers to wallets associated with Iran’s Islamic Revolutionary Guards Corps, a sanctioned entity, as well as payments connected to crews operating tankers used to evade sanctions on Russian oil exports.
In his letter, Blumenthal stated that Binance may have ignored warning signs and allowed illicit accounts to operate on its platform. He requested communications, account records, and compliance reports, particularly those related to users connected to Iran and participants in Russian sanctions-evasion networks. The senator has set a March 6 deadline for Binance to submit the requested documents.
Binance has firmly rejected the allegations. A company spokesperson said the exchange flags suspicious activity, enforces strict compliance procedures, and does not permit Iranian users on the platform. The company also disputed earlier media coverage and maintained that it has significantly strengthened its regulatory framework in recent years.
CEO Richard Teng criticized a Wall Street Journal report describing the alleged $1.7 billion in Iran-linked transfers as defamatory and called for a retraction. In a recent blog post, Binance stated it has reduced exposure to sanctioned and high-risk jurisdictions by approximately 97% since January 2024, claiming such exposure now accounts for just 0.009% of its total exchange volume.
The congressional probe comes after Binance’s 2023 settlement with U.S. authorities, in which the company agreed to pay $4.3 billion to resolve AML and sanctions violations. As part of the agreement, founder Changpeng Zhao stepped down as CEO and later served a four-month prison sentence. Binance also agreed to enhanced monitoring and pledged to strengthen its compliance systems.
