Binance has formally responded to accusations raised by US Senator Richard Blumenthal, firmly denying claims that its compliance systems are weak or that it facilitated any form of illegal financial activity.
The response follows a letter from Senator Blumenthal that questioned Binance’s anti money laundering controls and referenced media reports from outlets including The New York Times, Fortune, and The Wall Street Journal.
Binance stated that the reports cited in the Senate inquiry contain false, unsubstantiated, and defamatory allegations regarding its sanctions enforcement and AML procedures.
Binance’s Response
The company stressed that it maintains a strong compliance framework supported by more than 1,500 specialists worldwide, along with advanced monitoring tools designed to identify suspicious transactions. Binance also said it has consistently cooperated with law enforcement agencies, noting that it handled more than 71,000 such requests in 2025 alone.
According to the exchange, its team assisted authorities in seizing over 750 million dollars in illicit assets, including nearly 580 million dollars recovered for United States agencies. Binance further reported that its exposure to wallets associated with illegal activities has dropped by almost 97 percent since early 2024. This includes a 97.3 percent reduction in exposure to major Iranian crypto trading platforms.
Two entities mentioned in the Senate inquiry, Hexa Whale and Blessed Trust, were investigated internally and removed from the platform after reviews triggered by requests from law enforcement authorities. Binance added that no account on its platform conducted direct transactions with organizations based in Iran.
The company also dismissed claims regarding internal whistleblowers, explaining that the departures of certain employees were part of routine staff turnover.
Despite these assurances, Binance acknowledged that eliminating risk entirely on public blockchains is impossible. However, the company stated that it relies on strong monitoring systems and strict controls to reduce and manage potential risks.
The Senate Inquiry
In late February, eleven Democratic senators led by Richard Blumenthal sent a letter urging the Department of Justice and the Treasury Department to investigate Binance over alleged violations of sanctions related to Iran in 2026.
The inquiry referenced findings reportedly discovered by Binance’s own compliance staff last year. According to the letter, about 1.7 billion dollars in digital assets had flowed to entities connected to Iran.
Among the groups mentioned were the Iran backed Houthi movement and the Islamic Revolutionary Guard Corps. The letter also alleged that a vendor working with Binance directed about 1.2 billion dollars in a single instance to accounts linked to Iran.
The senators called for a swift and thorough review of the platform’s sanctions compliance to ensure that it is not violating the law again or posing a risk to United States national security.
They further claimed that individuals in Iran had gained access to more than 1,500 Binance accounts and suggested that the platform may also have been used to help Russia evade US sanctions.#cryptonews https://t.me/coinsignalpublic https://coinsignals.net
