- Senators including Mark Warner and Elizabeth Warren cite Iran-linked flows and 1,500+ flagged accounts.
- Lawmakers question if Binance meets DOJ and OFAC terms after its $4B settlement over AML and sanctions failures.
- Letter also references Trump ties, USD1 promotion, and a reported pardon of Changpeng Zhao.
Eleven Democratic senators urged federal agencies to investigate alleged illicit finance activity tied to Binance, according to reporting by Eleanor Terrett. The request came in a letter sent Friday to Attorney General Pam Bondi and Treasury Secretary Scott Bessent. Lawmakers cited media reports and questioned Binance’s compliance with its 2023 federal settlement.
Lawmakers Cite Alleged Iran-Linked Transactions
The letter came from members of the Senate Banking, Housing, and Urban Affairs Committee. It was led by Sen. Mark Warner and signed by Ranking Member Elizabeth Warren, among others. Senators Catherine Cortez Masto, Ruben Gallego, and Angela Alsobrooks also joined.
According to the letter, Binance compliance staff identified evidence last year involving roughly $1.7 billion in digital assets. Those funds allegedly flowed to Iranian entities, including the Houthis and Iran’s Revolutionary Guard Corps. In one case, a Binance vendor allegedly routed $1.2 billion linked to Iran-connected actors.
Lawmakers also cited reports that Iranian users accessed more than 1,500 Binance accounts. Additionally, they warned that Russian actors may have used the platform to evade sanctions.
Settlement Obligations Under Scrutiny
In 2023, Binance pleaded guilty to federal charges tied to sanctions and anti-money laundering failures. The company agreed to pay over $4 billion and implement reforms under U.S. oversight. These included enhanced sanctions screening and know-your-customer controls.
However, senators argued recent reports raise doubts about those commitments. They claimed Binance dismissed or lost compliance staff who flagged suspicious transactions. They also said the exchange became less responsive to law enforcement requests.
The letter urged a prompt review by the Justice Department and Treasury. Lawmakers asked whether Binance still meets obligations under agreements with the Justice Department and Treasury’s Office of Foreign Assets Control.
Trump Ties Add Political Dimension
The senators also referenced Binance’s recent business links involving President Donald Trump and his family’s crypto ventures. They pointed to Binance’s promotion of USD1, a stablecoin tied to World Liberty Financial.
According to the letter, Binance offered incentives, provided technical support, and accepted a $2 billion investment linked to the token. Lawmakers also cited Trump’s pardon of Binance founder Changpeng Zhao last fall. The senators requested a response from Bondi and Bessent by March 13, 2026.
