Senate Democrats Demand Probe into Binance Sanctions Compliance
On February 27, 2026, Sen. Chris Van Hollen (D-MD) led 10 Senate Democrats in a letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent urging a “prompt, comprehensive review” of Binance’s sanctions compliance program.
The senators expressed serious concern that Binance may again be facilitating illicit finance, particularly with Iranian entities, despite its 2023 guilty plea and $4+ billion penalty for sanctions violations and money laundering failures.
Key excerpt from the letter:
“Recent reports call into question Binance’s adherence to these promises… We urge you to conduct a prompt, comprehensive review of sanctions compliance on the platform to ensure that it is not once again violating the law and threatening U.S. national security.”
The group requested a response by March 13, 2026.
Reports Allege Continued Iranian Exposure
The inquiry follows investigative reporting by The New York Times, Fortune, and The Wall Street Journal claiming:
- Binance partners Hexa Whale and Blessed Trust acted as intermediaries for money laundering
- The platform enabled trade with Iranian government-linked entities
- Compliance staff who flagged these issues were disciplined or dismissed (Binance disputes this characterization)
These allegations emerged just over two years after Binance pleaded guilty in November 2023 to:
- Operating an unregistered money services business
- Willfully violating U.S. sanctions
- Breaching the Bank Secrecy Act
Former CEO Changpeng Zhao served four months in prison; President Trump pardoned him in October 2025.
Earlier Blumenthal Inquiry Adds Pressure
The Van Hollen letter follows a February 24, 2026, inquiry by Sen. Richard Blumenthal (D-CT) demanding similar records from Binance CEO Richard Teng, including details on Iranian usage and internal compliance staff decisions.
Both letters also raised questions about Binance’s reported financial and lobbying ties to World Liberty Financial, the Trump-family-linked crypto project.
Binance Response & Current Compliance Claims
A Binance spokesperson told The Block:
“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 has not directly addressed the Iranian allegations in public statements following the Senate letters.
Market & Regulatory Context
Neither Bitcoin (BTC ≈ $113,200) nor BNB showed significant movement on February 27, 2026, but prolonged U.S. scrutiny could impact Binance’s U.S. operations and BNB liquidity.
The renewed attention arrives as Binance operates under a deferred prosecution agreement from its 2023 settlement, with ongoing federal monitoring of its compliance program.
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