- U.S. lawmakers demand a Binance probe after $1.7B allegedly flowed to Iranian-linked accounts.
- Compliance issues and staff retaliation raise national security concerns at Binance.
- Binance’s ties to Trump family ventures and crypto debit cards spark sanctions worries.
Binance, the largest cryptocurrency exchange globally, is facing renewed scrutiny from the US authorities following allegations of poor anti-money laundering (AML) and sanctions procedures.
A bipartisan coalition of eleven senators, led by Attorney General Pamela Bondi and Treasury Secretary Scott Bessent, has called for a federal probe into the deal.
The senators have expressed concerns based on allegations that $1.7 billion in digital assets were laundered through Binance to Iranian-connected companies. Moreover, they have expressed concerns that Binance may have helped evade sanctions against Russia and that the company has ties to President Donald Trump’s family business.
Lawmakers Demand Urgent Review
Senators Elizabeth Warren, Jack Reed, Mark Warner, and other senators signed the letter, which was led by U.S. Senator Chris Van Hollen (D-Md.), a senior member of the Senate Committee on Banking, Housing, and Urban Affairs.
The senators stressed the point that “Our national security is at risk if Binance is supporting the financial activities of terrorist groups or other adversaries of the United States.”
The letter highlights Binance’s previous 2023 settlement agreements with U.S. authorities after the company pleaded guilty to violations of sanctions and AML laws. However, recent reports suggest compliance controls may have weakened.
Evidence indicated that one vendor routed $1.2 billion to Iran-linked entities, while Iranians accessed more than 1,500 Binance accounts. Hence, lawmakers demand a thorough review of the exchange’s adherence to its previous commitments.
Growing Concerns Over Business Ties
Moreover, senators noted Binance’s growing business relationships with President Trump’s family. The exchange promoted USD1, a Trump family-issued stablecoin, and assisted with related technology and investments.
Last fall, Trump pardoned Binance founder Changpeng Zhao, who had previously pleaded guilty to failing to implement an effective AML program. Binance has also launched crypto debit cards in the former Soviet region, as well as a partnership with Kyrgyzstan, which has sparked concerns of sanctions evasion.
