Lawmakers Demand Binance Records in Iran-Russia Sanctions Probe

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Lawmakers Demand Records From <a href="https://investment-policy.com/bnb-usd/">Binance</a> in Iran and Russia Probe

Key Takeaways

  • Senator Richard Blumenthal launched a formal Senate investigation into Binance over alleged sanctions violations.
  • Lawmakers are examining claims the exchange processed $1.7 billion tied to Iranian entities and Russia’s shadow oil fleet.
  • Binance denies wrongdoing and says it has significantly strengthened compliance since its 2023 settlement.
  • The probe adds new political and regulatory pressure on the crypto industry ahead of potential further enforcement action. 

As an analyst, I’m following a new investigation focused on whether the platform facilitated around $1.7 billion in transactions linked to sanctioned groups in Iran and Russia. Specifically, the probe is looking at whether these transactions involved Russia’s network of oil tankers used to evade sanctions – often referred to as its ‘shadow fleet’.

Senator Blumenthal, heading an investigation for the Senate’s subcommittee on investigations, is looking into claims reported by major U.S. news organizations. These claims allege that Binance didn’t stop suspicious transactions involving individuals and groups considered high-risk due to their connection to sensitive global issues.

Allegations of Sanctions Evasion

Based on investigative reports presented to the Senate, two companies linked to Binance – Hexa Whale and Blessed Trust – reportedly helped move money for groups connected to the Iranian government. Senators are investigating whether these companies allowed financial transactions for groups that are subject to restrictions.

Investigations suggest some of the money ended up in digital wallets linked to Iran’s Revolutionary Guard and groups they support in the region, like the Houthi rebels in Yemen. If these findings are accurate, it would be a significant breach of U.S. sanctions regulations.

Binance is also facing accusations of handling payments for ships involved in Russia’s “shadow fleet” – vessels allegedly used to bypass restrictions on Russian oil exports. The Senate investigation is trying to find out if Binance intentionally or carelessly allowed these transactions to happen.

A key concern is how Binance handles internal compliance. Reports suggest that employees who identified over 1,500 accounts with ties to Iran were later either suspended or fired. Now, lawmakers are asking for records detailing these internal decisions.

Binance Pushes Back

Binance strongly denies the claims made against it, stating that recent media reports are false and inaccurate. According to a company representative, the exchange has significantly improved its compliance procedures following a 2023 agreement with U.S. regulators.

Binance reports a significant decrease in its activity within sanctioned countries since the beginning of 2024. They state they do not allow users from Iran on their platform and have removed any accounts flagged as potentially problematic by their internal checks.

CEO Richard Teng has asked several news organizations to issue corrections, stating their reports inaccurately portray the company’s efforts to meet regulatory requirements.

Political and Regulatory Fallout

This new wave of attention arrives a little over two years after Binance settled with U.S. regulators for $4.3 billion and admitted to breaking anti-money laundering rules and sanctions. That settlement was one of the biggest penalties ever imposed in the cryptocurrency world.

Changpeng Zhao, the previous CEO, resigned as part of a legal agreement and spent four months in prison. He was later pardoned by President Donald Trump in October 2025, which sparked considerable political discussion.

Senator Blumenthal is also investigating Binance’s new partnership with World Liberty Financial, a cryptocurrency company with ties to the Trump family. He wants to know if political connections played a role in any regulatory choices, particularly how the SEC handled previous issues involving Binance.

Binance has until March 6, 2026, to provide the subcommittee with internal messages, account details, and documents proving its compliance with regulations, all related to the accusations against it. What lawmakers find could lead to a larger discussion about how cryptocurrency is regulated, how sanctions are enforced, and the international operations of digital currency platforms.

Just a quick disclaimer: I’m sharing my thoughts here as a crypto investor, but this isn’t financial advice. I’m not recommending any specific coins or strategies. Always do your own research – really dig into things – and if you’re not sure, talk to a qualified financial advisor before you invest any money. It’s your money, so make informed decisions!

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2026-02-25 17:42