US lawmakers are calling for a thorough investigation into Binance, the world”s largest cryptocurrency exchange, following allegations of $1.7 billion in transfers linked to Iranian entities. The scrutiny comes at a time of heightened geopolitical tensions in the Middle East, intensifying concerns regarding potential violations of US sanctions and anti-money laundering laws.
In a letter addressed to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, 11 senators, including Chris Van Hollen and Elizabeth Warren, expressed their worries about the efficacy of Binance“s anti-illicit finance measures. They articulated that these allegations pose a significant national security threat, suggesting that inadequate controls could enable substantial funds to flow to terrorist organizations or individuals evading sanctions.
The lawmakers cited reports indicating that investigators had identified at least two accounts on Binance that were allegedly utilized to direct assets towards entities associated with the Iran-backed Houthis and the Islamic Revolutionary Guard Corps. Additionally, the reports claimed that over 1,500 accounts on the exchange had been accessed by Iranian nationals.
This incident has raised alarms among senators, who characterized it as indicative of a “broader deterioration” in Binance“s compliance infrastructure. They emphasized that these financial movements could jeopardize the exchange”s recent settlement with US authorities, which involved a $4.3 billion fine and a commitment to rigorous oversight by a compliance monitor appointed by the Department of Justice.
The lawmakers underscored the potential implications of these alleged illicit transfers, arguing that they reflect a troubling trend of risky behavior by Binance. They pointed to the exchange”s recent launch of payment cards in parts of the former Soviet Union, which they believe could provide a means for Russian entities to bypass international sanctions.
The senators conveyed their dismay at the possibility that Binance may be prioritizing profit over its compliance responsibilities. They have demanded that the Treasury Department and the Department of Justice report back on the findings of their investigations by March 13, 2026. Should it be determined that Binance violated the terms of its 2023 monitorship, the exchange could face severe legal and financial consequences.
In response, Binance has vigorously defended its compliance protocols, asserting that it has seen a significant decline in illicit activity on its platform. The exchange reported a 96.8% decrease in sanctions-related exposure over an 18-month span, claiming that its compliance program is effective and that it has taken proactive measures to address any risks identified.
According to Binance, the reports in question misrepresent its operational controls, and the exchange maintains it acted decisively to mitigate risks by offboarding problematic accounts and collaborating with law enforcement agencies. The firm concluded that its compliance measures have proven effective in addressing these allegations.
