A group of eleven Democratic senators on the US Senate Committee on Banking, Housing, and Urban Affairs has called on the Department of Justice and the Treasury Department to launch a formal investigation into cryptocurrency giant Binance. In an official letter, they requested a comprehensive review of the company’s adherence to US sanctions, particularly its dealings with Iran, and asked authorities to scrutinize whether Binance is honoring the terms of the high-profile 2023 federal settlement it struck with the US government.
Allegations of Sanctions Breaches and Criminal Proceeds
The senators’ letter highlighted widespread media allegations that Binance facilitated the transfer of billions of dollars in digital assets to Iran and to organizations allegedly linked to terrorist activity. According to their findings, Binance’s own compliance teams reportedly discovered that more than $1.7 billion in crypto assets had been moved to Iran-backed groups, including the Houthi movement and Iran’s Revolutionary Guard Corps, during 2023 alone. The letter also cites reports that a Binance supplier channeled over $1.2 billion to persons and organizations linked to Iran, and that more than 1,500 accounts held by Iranian users accessed the platform in violation of US sanctions.
Binance’s Growing Links to the Trump Family
The senators called attention to the evolving relationship between Binance and the family of former President Donald Trump, especially regarding new ventures in cryptocurrency. The letter underscored Binance’s partnership with World Liberty Financial—a company supporting USD1, a stablecoin project backed by the Trump family. The senators noted the provision of incentives for USD1 on Binance, the two parties’ technical collaborations, and cited a $2 billion investment received by the initiative. They further referenced the presidential pardon issued after former Binance CEO Changpeng Zhao’s prison sentence, emphasizing the need for an impartial and thorough investigation into the nature of these connections.
International Risks: Russia and Beyond
Beyond concerns over Iran, the senators expressed alarm about Binance’s activities in the former Soviet Union. They argued that the company’s issuance of crypto-backed payment cards in this region might enable Russian entities to evade Western financial sanctions. The letter discussed Binance’s stablecoin and digital asset partnerships with Kyrgyzstan, warning that such involvement could expose the company to additional sanctions liability.
The senators argued that Binance’s apparent shortcomings in combating financial crime constitute a serious national security threat, potentially aiding sanctioned entities and terrorist groups in gaining access to the global financial system.
They further raised concerns over reports that Binance had dismissed employees after they flagged suspicious transactions, as well as allegations that the platform has become less transparent in its dealings with law enforcement. The senators warned that these actions could undermine the obligations of the settlement Binance finalized with US authorities in 2023.
Under the terms of its 2023 settlement with the US Department of Justice, Binance pleaded guilty to violating American sanctions laws and failing to prevent money laundering. The exchange agreed to pay more than $4 billion in penalties and to implement sweeping compliance reforms under government supervision.
Citing recent reports, the senators questioned the effectiveness of Binance’s internal controls against illicit transactions. Despite commitments made to the US Treasury’s Office of Foreign Assets Control to detect and block illegal operations, the senators said that current allegations have cast doubt on whether Binance is living up to those promises.
A Binance spokesperson denied the senators’ accusations, insisting that the company promptly alerts authorities to any suspicious activity. The spokesperson also dismissed claims of retaliation against whistleblowers as unfounded, adding that Binance continues to honor its regulatory commitments under the 2023 agreement with US officials.
