U.S. Senator opens probe on Binance over alleged $1.7 billion flow to Iranian entities

Richard Blumenthal sent Binance co-chief Richard Teng a missive asking him for records astir the exchange’s dealings with Iran-linked entities and the alleged dismissal of its investigators.

Feb 25, 2026, 11:38 a.m.

U.S. Senator Richard Blumenthal, a apical Democrat connected the Senate Homeland Security Committee, connected Tuesday opened a probe into alleged sanctions violations astatine crypto speech Binance, the New York Times reported connected Wednesday.

Blumenthal, who represents Connecticut, sent Binance a missive asking astir the $1.7 cardinal allegedly transferred from accounts connected the level to Iran-linked organizations, including Yemen’s Houthi militants. The violations were identified by interior Binance investigators who were subsequently dismissed, according to respective quality reports. The world’s largest crypto speech denied the allegations successful an email to CoinDesk.

“The New York Times’ anterior reporting is wrong. Binance has strict KYC (know-your-customer) and compliance procedures successful place, and determination are nary Iranian users connected the platform,” a Binance spokesperson said successful the email. The spokesperson besides reiterated the exchange’s stance “against mendacious claims successful these reports”, referring to articles by the New York Times, Wall Street Journal and Fortune astir the alleged dismissal of the 4 investigators involved.

Blumenthal sent a missive to Binance’s co-chief enforcement Richard Teng asking for records of the company’s dealings with 2 Hong Kong entities identified by the investigators arsenic the root of the transfers to Iran, the New York Times said.

One of the accounts was registered to Blessed Trust, a Hong Kong institution that served arsenic a Binance vendor. According to the newspaper, a Binance typical said the speech canceled the accounts and stopped moving with Blessed Trust successful January.

“Binance appears to person ignored warnings and recommendations to forestall Iranian wealth laundering schemes connected its cryptocurrency exchange,” Blumenthal wrote. The lawmaker besides asked Teng to manus implicit records astir “the suspension and dismissal of compliance unit and investigators” who flagged the alleged violations.

Binance’s laminitis and erstwhile CEO, Changpeng Zhao pleaded blameworthy successful November 2023 to violating anti-money-laundering laws and allowing customers successful countries nether sanctions, including Iran, to transact connected the platform. The institution agreed to wage $4.3 cardinal successful penalties and permission the U.S. market. Zhao served 4 months successful situation for his relation earlier being pardoned by President Donald Trump.

Binance said successful a blog post connected Sunday that its "sanctions-related vulnerability is minimal.” Rachel Conlan, different spokesperson, told the Times, determination is an ongoing interior probe astatine the speech and that a afloat study would beryllium sent to the U.S. Justice Department connected Feb. 25.

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