The world’s largest crypto exchange has issued a formal response to a letter from US Senator Richard Blumenthal, strongly rejecting claims that its compliance systems are weak or that it enabled any sort of illicit financial activity.
Binance indicated that the media reports cited in the Senate inquiry contain “false, unsupported, and defamatory claims” about its sanctions controls and AML procedures.
The statement emphasized that Binance operates a robust compliance program supported by more than 1,500 specialists worldwide and advanced monitoring tools designed to detect suspicious activity. In addition, the company said it had been highly cooperative with law enforcement, adding that it processed over 71,000 such requests in 2025 alone.
It explained that its team helped authorities seize more than $750 million in illicit assets, including almost $580 million for US agencies. Binance also claimed that its exposure to wallets linked to some sort of illegal activity has declined by nearly 97% since early 2024, which includes a 97.3% drop in exposure to major Iranian crypto trading platforms.
Hexa Whale and Blessed Trust, two of the entities named in the inquiry, were proactively investigated and removed from the platform following internal reviews triggered by law enforcement requests. It added that no Binance account conducted direct transactions with Iran-based entities. It also rejected allegations about internal whistleblowers by explaining that employee departures were part of normal turnover.
Nevertheless, the company also said it “acknowledges that absolute zero risk is impossible on public blockchains but relies on robust monitoring and controls to minimize and mitigate risks.”
11 Democratic senators, led by Richard Blumenthal, urged the DOJ and Treasury in a letter sent in late February to investigate Binance over alleged Iran sanction violations in 2026. The inquiry cited findings uncovered by the exchange’s own compliance personnel last year, in which they discovered that $1.7 billion in digital assets had flowed to Iranian-linked entities.
Some of the names identified in the letter included Iran-backed Houthis and the Islamic Revolutionary Guard Corps. It also claims that a Binance vendor allegedly directed $1.2 billion in one instance to Iran-linked accounts.
“We urge you to conduct a prompt, comprehensive review of sanctions compliance on the platform to ensure that it is not once again violating the law and threatening U.S. national security,” wrote the Senators.
They added that Iranians had reportedly accessed more than 1,500 accounts on Binance, and further alleged that the exchange may have been used to help Russia evade US sanctions.
Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017 and now serves as CryptoPotato's Assistant Editor-in-Chief. He has managed numerous crypto-related projects and is passionate about all things blockchain.