Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
U.S. Senator initiates investigation into Binance regarding purported $1.7 billion transactions to Iranian organizations.
Richard Blumenthal sent a letter to Binance co-CEO Richard Teng requesting documentation regarding the exchange’s interactions with entities connected to Iran and the purported termination of its investigators.
Top Democrat in Senate Homeland Security Committee initiates inquiry into Binance. (Harold Mendoza on Unsplash/Modified by CoinDesk)
Key points:
- Senator Richard Blumenthal has launched a Senate investigation into Binance over claims that $1.7 billion was sent from the crypto exchange to organizations linked to Iran, including Yemen’s Houthi militants.
- Binance has refuted the accusations, stating that it has rigorous know-your-customer and compliance protocols and no users from Iran, while claiming that media reports regarding the termination of internal investigators are incorrect.
- Blumenthal has sought documentation on Binance’s transactions with Hong Kong entities associated with the alleged transfers and on the suspension and firing of compliance personnel, as the exchange performs its own internal assessment to be submitted to the Justice Department.
U.S. Senator Richard Blumenthal, a prominent Democrat on the Senate Homeland Security Committee, on Tuesday initiated an inquiry into purported sanctions violations at crypto exchange Binance, as reported by the New York Times on Wednesday.
Blumenthal, representing Connecticut, sent a letter to Binance inquiring about the $1.7 billion reportedly transferred from accounts on the platform to organizations connected to Iran, including Yemen’s Houthi militants. The violations were flagged by internal Binance investigators who were later dismissed, according to various news outlets. The world’s largest crypto exchange denied the allegations in a communication to CoinDesk.
Related Posts
STORY CONTINUES BELOWDon’t miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newslettersSign me up
“The New York Times’ previous reporting is inaccurate. Binance has strict KYC (know-your-customer) and compliance measures in place, and there are no Iranian users on the platform,” a Binance representative stated in the email. The spokesperson also emphasized the exchange’s position “against false claims in these reports,” referencing articles by the New York Times, Wall Street Journal, and Fortune regarding the alleged termination of the four involved investigators.
Blumenthal sent a letter to Binance’s co-CEO Richard Teng requesting documentation of the company’s transactions with two Hong Kong entities identified by the investigators as the source of the transfers to Iran, according to the New York Times.
One of the accounts was registered to Blessed Trust, a Hong Kong firm that acted as a vendor for Binance. The newspaper noted that a Binance representative stated the exchange terminated the accounts and ceased collaboration with Blessed Trust in January.
“Binance seems to have disregarded warnings and recommendations to prevent Iranian money laundering operations on its cryptocurrency exchange,” Blumenthal wrote. The lawmaker also requested Teng to provide records concerning “the suspension and termination of compliance personnel and investigators” who reported the alleged violations.
Binance’s founder and former CEO, Changpeng Zhao, pleaded guilty in November 2023 to breaching anti-money-laundering regulations and permitting customers from countries under sanctions, including Iran, to operate on the platform. The company consented to pay $4.3 billion in penalties and exit the U.S. market. Zhao served four months in prison for his involvement before receiving a pardon from President Donald Trump.
Binance asserted in a blog post on Sunday that its “sanctions-related exposure is minimal.” Rachel Conlan, another spokesperson, informed the Times that an internal investigation is currently ongoing at the exchange and that a comprehensive report would be provided to the U.S. Justice Department on February 25.
