Crypto exchange Binance has rejected allegations from U.S. lawmakers that it facilitated more than $1.7 billion in cryptocurrency transfers linked to Iranian networks, pushing back against a Senate inquiry that cited recent investigative media reports.
In a letter dated 6 March, Binance said claims referenced in an inquiry from U.S. Senator Richard Blumenthal were “demonstrably false” and based on inaccurate reporting.
The response addressed concerns raised by the Senate Permanent Subcommittee on Investigations. The concerns were about alleged sanctions violations and money laundering risks associated with the platform.
Blumenthal’s inquiry, sent on 24 February, cited reporting from outlets including the Wall Street Journal, The New York Times, and Fortune.
These outlets alleged that intermediaries using Binance moved funds linked to Iranian networks and Russia’s sanctions-evading oil trade.
Senate inquiry cites $1.7B in alleged transfers
According to the senator’s letter, investigative reporting suggested that accounts associated with two Binance partners—Hexa Whale and Blessed Trust—acted as intermediaries for cryptocurrency transfers linked to Iranian entities.
The reports claimed that internal investigators at Binance identified roughly $1.7 billion in transfers over 2024 and 2025. These transfers allegedly moved through accounts connected to an Iranian network.
Some transactions were reportedly tied to wallets linked to Iran’s Islamic Revolutionary Guard Corps. Others were linked to payments associated with Russia’s so-called shadow fleet, which transports sanctioned oil.
Blumenthal’s inquiry also questioned reports that investigators who raised compliance concerns were later suspended or dismissed. The inquiry raised concerns about the exchange’s adherence to sanctions enforcement and anti-money-laundering commitments.
The senator requested documents and internal communications related to the two entities. He also requested records on potential Iranian or Russian users of the platform.
Binance disputes allegations and defends compliance
In its response, Binance said the media reports cited in the inquiry misrepresented the facts and lacked credible evidence.
The company said it maintains strict know-your-customer [KYC] and sanctions-screening requirements and prohibits users residing in Iran from accessing the platform.
Binance said it launched investigations into Hexa Whale and Blessed Trust after receiving inquiries from law enforcement agencies.
According to the company, Hexa Whale was removed from the platform in August 2025, while Blessed Trust was offboarded in January 2026 following internal reviews.
The company also emphasized that, to its knowledge, no Binance account transacted directly with an Iran-based entity.
Binance highlighted its broader compliance infrastructure, noting it has more than 1,500 compliance staff worldwide and processed over 71,000 law-enforcement requests in 2025.
Over the past three years, the exchange said it helped authorities seize more than $752 million linked to illicit activity.
The company also cited data showing its exposure to wallets associated with illicit activity declined from 0.284% of total exchange volume in early 2024 to 0.009% by mid-2025, representing a drop of nearly 97%.
Dispute emerges amid broader scrutiny of crypto sanctions compliance
The exchange’s response comes amid ongoing scrutiny of cryptocurrency platforms’ role in sanctions enforcement.
In 2023, Binance and its founder, Changpeng Zhao, pleaded guilty to violations of anti-money laundering and sanctions controls as part of a U.S. government settlement that included a $4.3 billion penalty.
Zhao later served a four-month prison sentence and was pardoned by Donald Trump.
The Senate inquiry suggests lawmakers are continuing to examine whether cryptocurrency exchanges are adequately preventing the use of digital assets to bypass international sanctions.
Final Summary
- Binance has rejected Senate allegations that it enabled $1.7 billion in Iran-linked cryptocurrency transfers, calling the claims inaccurate and unsupported.
- The dispute highlights ongoing scrutiny by U.S. lawmakers over whether crypto exchanges are effectively enforcing sanctions and anti-money laundering controls.
