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- Binance denies facilitating $1.7B in Iran-linked crypto transfers cited in a Senate inquiry.
- U.S. lawmakers are investigating intermediaries allegedly tied to Iranian networks.
- The exchange says it maintains strict compliance and removed the partners involved.
Crypto exchange Binance has strongly denied allegations from U.S. lawmakers claiming the platform enabled more than $1.7 billion in cryptocurrency transfers connected to Iranian networks. The dispute emerged after a Senate inquiry raised concerns about potential sanctions violations and the role of intermediaries operating through the exchange.
In a letter dated March 6, Binance rejected the claims as inaccurate and said the accusations were based on misleading reporting. The response addressed questions raised by Richard Blumenthal, a U.S. senator who requested documents and internal communications related to suspected transfers linked to Iranian entities and Russia’s sanctions-evading oil trade.
Senate Inquiry Highlights Alleged $1.7 Billion Transfers
The investigation was initiated by the Senate Permanent Subcommittee on Investigations after media reports suggested that intermediaries using Binance had moved funds tied to Iranian networks.
According to the inquiry, accounts linked to two Binance partners—Hexa Whale and Blessed Trust—may have facilitated transfers connected to entities in Iran. Reports cited internal investigators who allegedly identified about $1.7 billion in cryptocurrency transactions during 2024 and 2025 passing through accounts associated with an Iranian network.
Some transactions were reportedly linked to wallets tied to the Islamic Revolutionary Guard Corps. Others were connected to payments related to Russia’s so-called shadow fleet, a network of ships believed to transport sanctioned oil.
Blumenthal’s letter also raised questions about whether Binance investigators who flagged compliance risks were later suspended or removed. Lawmakers asked the exchange to provide records about the two partner entities and potential Iranian or Russian users on the platform.
Binance Rejects Claims and Points to Compliance Measures
Binance responded by disputing the accuracy of the reports cited in the inquiry. The company said it enforces strict know-your-customer (KYC) and sanctions-screening procedures and does not allow users residing in Iran to access its platform.
The exchange also confirmed it investigated both Hexa Whale and Blessed Trust after receiving inquiries from law-enforcement agencies. According to Binance, Hexa Whale was removed from the platform in August 2025, while Blessed Trust was offboarded in January 2026 following internal reviews.
Binance stated that it has no evidence that any Binance account directly transacted with an Iran-based entity.
The company also emphasized its compliance infrastructure. Binance says it employs more than 1,500 compliance specialists worldwide and processed over 71,000 law-enforcement requests in 2025 alone. Over the past three years, it claims to have helped authorities seize more than $752 million connected to illicit activities.
Crypto Sanctions Compliance Remains Under the Spotlight
The dispute arrives amid ongoing regulatory scrutiny of cryptocurrency exchanges and their ability to prevent sanctions evasion.
In 2023, Binance and its founder Changpeng Zhao reached a settlement with U.S. authorities over anti-money-laundering and sanctions violations. The deal included a $4.3 billion penalty and Zhao later served a four-month prison sentence.
Also Read: $15M Chainlink Transfer to Binance: Is a LINK Breakout or Sell-Off Coming?
Lawmakers now appear to be examining whether crypto platforms have improved compliance systems since that case.
The clash between Binance and U.S. lawmakers highlights the continuing tension between crypto platforms and regulators over sanctions enforcement. While the Senate inquiry raises questions about potential misuse of digital assets, Binance insists the claims are inaccurate and points to strengthened compliance systems. As regulators continue their investigations, the outcome could influence how global exchanges manage sanctions screening and oversight moving forward.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
