Senate Democrats Press DOJ, Treasury to Probe Binance Over Trump Ties, Iran Sanctions Allegations

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Senate Democrats Press DOJ, Treasury to Probe Binance Over Trump Ties, Iran Sanctions Allegations

Eleven Democrats on the U.S. Senate Banking, Housing, and Urban Affairs Committee are pressing the Trump administration to investigate Binance over allegations that the exchange facilitated illicit finance activity tied to Iran and may be violating its 2023 federal settlement.

In a letter sent Friday to Attorney General Pam Bondi and Treasury Secretary Scott Bessent, the senators urged the Justice Department and Treasury to conduct a “prompt, comprehensive review” of Binance’s sanctions compliance controls. 

The lawmakers cited recent media reports alleging that billions of dollars in digital assets flowed through the platform to Iranian entities, including groups linked to terrorism.

The letter was led by Sen. Mark Warner and signed by Ranking Member Elizabeth Warren along with Sens. Chris Van Hollen, Jack Reed, Catherine Cortez Masto, Tina Smith, Raphael Warnock, Andy Kim, Ruben Gallego, Lisa Blunt Rochester and Angela Alsobrooks.

According to the senators, Binance compliance personnel uncovered evidence last year that roughly $1.7 billion in digital assets had been routed through the exchange to Iranian entities, including the Iran-backed Houthis and the Islamic Revolutionary Guard Corps. 

In one instance, a Binance vendor allegedly moved $1.2 billion in funds connected to Iran-linked actors. The letter also claims that Iranian users accessed more than 1,500 Binance accounts and that the platform may have been used in efforts by Russian actors to evade sanctions.

The lawmakers raised concerns that employees who identified the transactions were dismissed and that Binance has become less responsive to law enforcement requests. They argued that such actions would conflict with the company’s obligations under its 2023 plea agreement and related settlements.

In 2023, Binance pleaded guilty to federal charges including violations of U.S. sanctions laws and anti-money laundering failures. The company agreed to pay more than $4 billion in penalties and committed to sweeping reforms under U.S. supervision, including enhanced know-your-customer procedures and sanctions screening. 

The senators contend that the latest reports call into question whether those reforms have been implemented and maintained. In its settlement with the Treasury’s Office of Foreign Assets Control, Binance committed to implement controls capable of identifying and blocking prohibited transactions. 

Allowing $1.7 billion in digital assets to move to sanctioned Iranian entities, they wrote, would be inconsistent with that commitment.

Binance and President Donald Trump

The letter also touched on Binance’s recent business relationships involving President Donald Trump and his family’s crypto ventures. Lawmakers pointed to the exchange’s promotion of USD1, a stablecoin issued by World Liberty Financial, a Trump family-backed project.

According to the letter, Binance offered interest incentives for users holding USD1, assisted with technology related to the token and accepted a $2 billion investment tied to it.

The senators further referenced Trump’s pardon last fall of Binance founder Changpeng Zhao, who had pleaded guilty to failing to implement an effective anti-money laundering program and served a four-month prison sentence. 

The lawmakers argued that these connections heighten the need for what they described as a “thorough, impartial” probe.

Binance’s dubious ties with Russia

Beyond Iran-related concerns, the letter cites Binance’s recent launch of crypto-linked payment cards in parts of the former Soviet Union. The senators warned that similar products have been used to bypass restrictions on the Russian financial system. 

They also noted the exchange’s partnership with Kyrgyzstan to launch a stablecoin and digital currency initiative, raising questions about exposure to sanctions evasion risks.

“These allegations raise grave concerns that poor illicit finance controls at Binance remain a significant threat to national security,” the senators wrote. They warned that weak safeguards at the world’s largest digital asset exchange could allow terrorist groups or sanctions evaders to access the global financial system.

A Binance spokesperson disputed the allegations, stating that the company detected and reported suspicious activity and that claims it retaliated against compliance staff are false. 

The company has said it remains committed to meeting its regulatory obligations under the 2023 agreements.

The senators requested a response from Bondi and Bessent by March 13.

This post Senate Democrats Press DOJ, Treasury to Probe Binance Over Trump Ties, Iran Sanctions Allegations first appeared on Bitcoin Magazine and is written by Micah Zimmerman.