Binance pushed again onerous towards a probe from U.S. Senator Richard Blumenthal, persevering with to violate sanctions tied to Iran. In an open letter launched Friday, Binance dismissed the claims fully, calling the experiences behind the investigation false and defamatory. In line with the firm, the information used within the probe is outdated and deceptive.
Binance already paid a large $4.3 billion settlement final 12 months to resolve previous compliance failures. Many traders believed that the chapter was closed.
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What the Investigation Is About
The stress is coming from the Senate’s Everlasting Subcommittee on Investigations, a robust panel contained in the Homeland Safety Committee led by Senator Richard Blumenthal.
The allegation is easy. Lawmakers need to know whether or not Binance allowed transactions linked to Iranian entities, which might violate sanctions enforced by the U.S. Treasury’s Workplace of International Belongings Management (OFAC). That company maintains the blacklist of nations, teams, and organizations with which firms usually are not allowed to transact.
Sen. Blumenthal, the rating member of the Subcommittee on Investigations, wrote to Binance co-CEO Richard Teng at this time demanding solutions about our, the WSJ, and the NYT’s reporting on potential sanctions violations and the firing of investigators: pic.twitter.com/ptjg7F6EsH
— Leo Schwartz (@leomschwartz) February 24, 2026
The inquiry relies on experiences claiming two Hong Kong firms, Hexa Whale and Blessed Belief, might have acted as middlemen. The speculation is that these companies helped route cash between Binance and teams linked to Iran.
For now, that is solely an investigation, not a legal case. However Senate probes can escalate rapidly. They’ll set off subpoenas, public hearings, and even referrals to the Division of Justice if critical violations are uncovered.
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Binance Calls the Claims “Demonstrably False”
Binance isn’t taking this mendacity down. In a uncommon transfer for a corporation arguably nonetheless below the regulatory microscope, the change issued a blistering response calling the allegations “unsupported by credible proof.”
We’ve voluntarily responded to Senator Blumenthal’s inquiry which raises false and defamatory allegations reported by the WSJ. Whereas we take such issues severely, it’s necessary for us to focus on our industry-leading compliance which we have labored onerous to construct and shield our… pic.twitter.com/qOZ7h1y5nu
— Richard Teng (@_RichardTeng) March 6, 2026
The corporate said that the precise companions talked about, Hexa Whale and Blessed Belief, had no direct accounts with Iranian entities and have been promptly faraway from the platform as soon as Binance’s inner methods flagged potential oblique publicity.
This aggressive posture suggests Binance feels assured in its new compliance knowledge. The corporate highlighted that its superior monitoring instruments have diminished publicity to illicit funds by 97%, down to simply 0.009% of whole change quantity. It is a dramatic shift from the period of former CEO Changpeng Zhao, implying the present management needs to attract a tough line between the “outdated Binance” that pleaded responsible and the “new Binance” working at this time.
That issues as a result of a profitable protection right here may show that the corporate’s inner reforms are literally working. Binance claims it now makes use of over 25 superior analytics instruments to catch dangerous actors earlier than the federal government does.
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