Senate Democrats Urge DOJ to Investigate Binance

TLDR

• Senate Democrats urged the Justice Department and Treasury to investigate Binance over alleged Iran sanctions violations.
• Lawmakers cited reports that $1.7 billion in digital assets moved to Iranian entities through Binance.
• The senators raised concerns that Binance may have breached its 2023 federal settlement obligations.
• The letter referenced Binance’s ties to a Trump family-backed stablecoin project.
• Binance denied the allegations and said it remains committed to its compliance agreements.

Senate Democrats have urged the Justice Department and Treasury to investigate Binance over Iran sanctions concerns and Trump-linked ties. Lawmakers sent a formal letter requesting a prompt federal review of the crypto exchange’s compliance controls. They cited reports that billions in digital assets flowed to sanctioned Iranian entities through the platform.

Binance Faces Scrutiny Over Iran Sanctions Compliance

Sen. Mark Warner led the letter and secured signatures from Sen. Elizabeth Warren and nine other Democrats. The senators asked Attorney General Pam Bondi and Treasury Secretary Scott Bessent to open a comprehensive review. They referenced media reports that linked Binance to illicit finance activity tied to Iran.

According to the letter, compliance staff identified $1.7 billion routed to Iranian entities last year. Those entities included the Iran-backed Houthis and the Islamic Revolutionary Guard Corps. The senators also claimed that a Binance vendor moved $1.2 billion connected to Iran-linked actors.

The lawmakers stated that Iranian users accessed more than 1,500 Binance accounts. They also raised concerns about the possible use of the platform by Russian actors to evade sanctions. They warned that such activity could breach Binance’s 2023 federal settlement obligations.

The letter alleged that Binance dismissed employees who flagged the transactions. It also claimed the exchange became less responsive to law enforcement requests. The senators argued that those actions would conflict with the company’s plea agreement terms.

In 2023, Binance pleaded guilty to violating U.S. sanctions laws and anti-money laundering rules. The company agreed to pay more than $4 billion in penalties. It also committed to enhanced know-your-customer procedures and sanctions screening under U.S. supervision.

Trump Ties and Russia Concerns Add Pressure

The senators also pointed to business links involving President Donald Trump and his family’s crypto ventures. They referenced Binance’s promotion of USD1, a stablecoin issued by World Liberty Financial. Lawmakers stated that the project has ties to the Trump family.

According to the letter, Binance offered interest incentives to users holding USD1. The exchange also assisted with technology related to the token. Lawmakers further cited a $2 billion investment tied to the stablecoin.

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

Beyond Iran, the lawmakers cited Binance’s launch of crypto-linked payment cards in parts of the former Soviet Union. They warned that similar products have helped users bypass restrictions on Russia’s financial system. They also noted Binance’s partnership with Kyrgyzstan on a stablecoin and digital currency initiative.

“These allegations raise grave concerns that poor illicit finance controls at Binance remain a threat to national security,” the senators wrote. They urged federal agencies to conduct what they described as a “thorough, impartial” probe.