Investigation into Binance: U.S. Senate examines $1.7 billion in transactions

Key points:

• The U.S. Senate has opened an investigation into Binance over potential $1.7 billion in transactions allegedly connected to Iran and Russia’s “shadow fleet.”
• Binance has rejected the accusations, stating that it has significantly reduced operations in high-risk sanctioned jurisdictions.

A review of Binance’s operations has begun in the U.S. Congress following media reports that approximately $1.7 billion in transactions may have passed through the platform. These transactions were allegedly linked to sanctioned Iranian entities as well as Russia’s so-called “shadow fleet,” which is used to export oil in обход of restrictions.

Senator Richard Blumenthal, a member of the Senate Permanent Subcommittee on Investigations, sent a formal letter to Binance CEO Richard Teng.

In his letter, the senator cited reporting from The Wall Street Journal, The New York Times, and Fortune. According to those publications, Binance’s internal compliance team identified at least two affiliated entities — Hexa Whale and Blessed Trust. They were allegedly used as intermediaries to facilitate transactions involving organizations that may be connected to Iranian authorities. The senator stated:

“Previously, Binance publicly rejected similar media claims. In particular, it disputed a Fortune report alleging that more than $1 billion in Iran-linked transactions had been processed through the platform and that employees who raised concerns were dismissed”.

Blumenthal requested internal communications, account records, and compliance reports, including documentation related to clients potentially linked to Iran or Russian sanctions-evasion networks.

Binance’s Position

The company has denied the allegations. A Binance spokesperson said the exchange proactively identified suspicious transactions and reported them to the appropriate authorities. The company also emphasized that it does not provide services to users in Iran.

Previously, Binance publicly rejected similar media claims. In particular, it disputed a Fortune report alleging that more than $1 billion in Iran-linked transactions had been processed through the platform and that employees who raised concerns were dismissed.

Binance covering its tracks? Why the exchange could be headed for trouble

Last year, the exchange began dismissing employees who may have been aware of unlawful transactions and anti-money laundering violations.

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Binance CEO Richard Teng also criticized The Wall Street Journal’s report about the alleged $1.7 billion in transfers, calling it defamatory and demanding a retraction. In a company blog post, Binance said it has reduced its exposure to high-sanctions-risk jurisdictions by approximately 97% since January 2024. According to the exchange, such transactions now account for roughly 0.009% of its total trading volume.