Catenaa, February 26, 2026- Sen. Richard Blumenthal has opened an inquiry into Binance following media reports alleging the crypto exchange may have enabled sanctions evasion tied to Iran, escalating scrutiny of the company’s compliance practices.
Blumenthal, the top Democrat on an investigative panel within the Senate Homeland Security Committee, sent a letter to Binance CEO Richard Teng seeking records related to alleged use of the platform by individuals in Iran and the dismissal of compliance staff involved in reviewing those transactions.
Recent reports by major US publications said Binance compliance personnel identified two partners, Hexa Whale and Blessed Trust, as intermediaries that allegedly facilitated transactions involving Iranian government entities.
The reports also said staff linked to the internal review faced discipline or termination. Binance has disputed those accounts.
The inquiry comes more than two years after Binance pleaded guilty to failing to register as a money transmitting business and violating sanctions laws, agreeing to pay more than $4 billion in penalties.
Former CEO Changpeng Zhao served a four-month prison sentence after being charged in the case. President Donald Trump later pardoned Zhao.
Blumenthal said Binance has been aware that Iranian actors used its platform to bypass sanctions and anti-money laundering controls. He also questioned Binance’s reported ties to World Liberty Financial, a crypto firm linked to Trump’s family and envoy Steve Witkoff.
A Binance spokesperson said the company detected and reported suspicious activity, calling that evidence its controls are functioning.
The spokesperson said Binance has strengthened compliance in recent years and rejected claims of wrongdoing.
