Binance in Hot Water: $1.7B, Terrorists, and a Shadow Fleet – Oh My!

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Oh, Binance, you’ve done it again! Just when you thought the drama couldn’t get any juicier, along comes Democratic Senator Richard Blumenthal with a formal inquiry that’s basically the crypto equivalent of a soap opera plot twist. Grab your popcorn, folks-this is going to be good.

Senate Demands Records From Binance (Because Who Doesn’t Love a Good Paper Trail?)

In a letter that’s more dramatic than a Bridget Jones diary entry, Blumenthal (dated February 24, no less) accused Binance of being the crypto world’s enabler-in-chief. Apparently, they’ve been playing fast and loose with US and international sanctions against Iran. Whoopsie!

According to the senator, Binance has been turning a blind eye to warnings about Iranian money laundering schemes, allowing a cool $1.7 billion in transfers connected to Iran. And what’s this about supporting terrorist organizations and illicit Russian oil sales? Sounds like someone’s been watching too many spy movies.

Blumenthal wants Binance to hand over all the juicy details by March 6, 2026. That’s right-the Senate’s Permanent Subcommittee on Investigations (PSI) is on the case, and they’re not here to play crypto bingo.

Alleged Findings Of Internal Review (Or: What Happens When Compliance Meets Chaos)

Thanks to some sleuthing by The Wall Street Journal, The New York Times, and Fortune, we know that Binance’s internal compliance team was onto something. Two partners-Hexa Whale and Blessed Trust-were allegedly up to no good, laundering funds and cozying up to Iranian government-linked entities. Fancy that!

Despite Binance’s claims that they don’t allow Iranian users, internal reviews found roughly 2,000 accounts linked to Iranian entities. Oops? And let’s not forget the warnings that Hexa Whale might be funding terrorist groups like Yemen’s Houthi movement. But hey, who needs red flags when you’ve got VIP status, right?

Oh, and did we mention the cryptocurrency transfers to Iran’s Islamic Revolutionary Guards Corps (IRGC) and payments to Russian oil tanker crews? Because nothing says “compliance” like funding a shadow fleet.

Blumenthal’s letter claims Binance ignored all these warning signs. Investigators recommended stronger “know your customer” controls and banning those shady sailors, but apparently, those suggestions were about as welcome as a cold cup of tea on a rainy day.

And the cherry on top? Binance allegedly gave Hexa Whale VIP status, even though they were suspected of using fake documents. Because nothing screams “legit” like a VIP badge for potential bad actors.

No Evidence Of Violations? (Sure, Jan)

Binance, of course, denies everything. In a February 22 statement, they claimed an internal review found “no evidence of violations of applicable sanctions laws.” Sure, sure. They also denied firing investigators for raising concerns, which is about as convincing as a diet that includes “just one” chocolate croissant.

The exchange insists they’ve beefed up their compliance systems since their 2023 settlement. They say sanctions-related exposure dropped from 0.284% in January 2024 to 0.009% by July 2025-a 96.8% reduction. Impressive, if true. And transaction volume with Iranian crypto exchanges? Down from $4.19 million to $1.1 million. Go team?

Oh, and one-quarter of their global workforce is now dedicated to anti-money laundering and sanctions compliance. Because nothing says “we’re serious” like a quarter of your staff playing crypto cop.

BNB Token Chart

Meanwhile, Binance’s native token, BNB, is living its best life, trading at $616 with a 5% surge in 24 hours. Because apparently, drama is the new rocket fuel for crypto prices.

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2026-02-26 12:11