Crypto exchange Binance has formally rejected allegations from U.S. Senator Richard Blumenthal that it facilitated over $1.7 billion in cryptocurrency transfers linked to Iranian networks and Russia's sanctions-evading oil trade. In a letter dated March 6, 2026, Binance called the claims "demonstrably false" and based on inaccurate media reporting from outlets including the Wall Street Journal, The New York Times, and Fortune.
The Senate inquiry, sent on February 24, cited reports alleging that accounts associated with Binance partners Hexa Whale and Blessed Trust acted as intermediaries for these transfers between 2024 and 2025. Some transactions were reportedly tied to wallets linked to Iran’s Islamic Revolutionary Guard Corps. The inquiry also questioned reports that internal Binance investigators who raised compliance concerns were later suspended or dismissed.
In its defense, Binance stated it maintains strict KYC and sanctions-screening protocols, prohibiting users residing in Iran from its platform. The company revealed it had launched investigations into the named entities after law enforcement inquiries, resulting in Hexa Whale being removed in August 2025 and Blessed Trust being offboarded in January 2026. Binance emphasized that, to its knowledge, no account transacted directly with an Iran-based entity.
The exchange highlighted its compliance infrastructure, noting it has over 1,500 compliance staff worldwide, processed over 71,000 law-enforcement requests in 2025, and helped authorities seize more than $752 million linked to illicit activity over three years. It also cited data showing its exposure to illicit wallets dropped by nearly 97%, from 0.284% of total exchange volume in early 2024 to 0.009% by mid-2025.
This dispute occurs against a backdrop of heightened scrutiny, following Binance's 2023 $4.3 billion settlement with the U.S. government for violations of anti-money laundering and sanctions controls, which included guilty pleas from the exchange and its founder, Changpeng Zhao.
