Sen. Blumenthal Launches Inquiry into Binance Over Alleged Iran Sanctions Evasion
On February 24, 2026, Sen. Richard Blumenthal (D-CT), ranking member of the Senate Homeland Security Committee’s investigative subcommittee, sent a formal letter to Binance CEO Richard Teng demanding documents related to the exchange’s alleged facilitation of transactions involving Iranian entities and possible retaliation against internal compliance staff.
The inquiry follows a series of investigative reports by The New York Times, Fortune, and The Wall Street Journal that detailed how Binance partners Hexa Whale and Blessed Trust allegedly acted as intermediaries for money laundering and enabled trade with Iranian government-linked accounts. According to the reporting, individuals who raised concerns about these transactions were disciplined or terminated—claims Binance has strongly denied.
Blumenthal wrote:
“Binance is a repeat offender: it has long been aware that the Iranian regime and its terrorist proxies use its cryptocurrency platform as a convenient and reliable means to bypass international sanctions, anti-money laundering controls, and other banking restrictions.”
The senator requested records covering:
- Use of Binance by individuals or entities in Iran
- Internal investigations and disciplinary actions related to Iranian transactions
- Communications regarding compliance staffing decisions
Any ties or financial arrangements with World Liberty Financial (WLFI), the Trump-family-linked crypto venture
Context: Binance’s 2023 Guilty Plea and $4B+ Penalties
The letter arrives just over two years after Binance pleaded guilty in November 2023 to:
- Operating an unregistered money transmitting business
- Willfully violating U.S. sanctions
- Breaching the Bank Secrecy Act
The company paid more than $4 billion in penalties. Former CEO Changpeng Zhao served four months in prison after pleading guilty to related charges, though he received a presidential pardon from Donald Trump in October 2025.
A Binance spokesperson responded:
“Over the last several years, Binance has undergone one of the industry’s strongest compliance transformations… We detected and reported suspicious activity, and this is evidence that our controls are working.”
The company also called the recent reporting “wrong” and said it continues to cooperate with regulators.
Ties to World Liberty Financial Raise Additional Questions
Blumenthal specifically highlighted Binance’s reported financial and lobbying connections to World Liberty Financial, the cryptocurrency project linked to President Trump’s sons and Steve Witkoff. The senator suggested these relationships may represent an attempt to “evade accountability and influence the White House.”
No public evidence has confirmed direct financial flows between Binance and WLFI, though industry sources have reported discussions and shared advisory relationships.
Market and Regulatory Implications
The inquiry adds to mounting U.S. regulatory pressure on Binance, which has already faced:
- Ongoing monitoring under a 2023 deferred prosecution agreement
- Separate investigations into past compliance practices
- Restrictions in multiple jurisdictions
While Bitcoin (BTC) and Ethereum (ETH) prices remained stable on February 25, 2026 (BTC ≈ $113,200, ETH ≈ $4,070), prolonged uncertainty around Binance could impact BNB and broader market liquidity.
