Senate Inquiry Targets Binance Over Iran Transaction Discrepancies

Senator Richard Blumenthal has launched a formal inquiry into Binance, requesting that co-CEO Richard Teng explain significant discrepancies between the exchange's previous testimony to the Senate and recent media reports regarding transactions tied to Iran [1]. The senator expressed concern that the company may have provided misleading information to the Senate Permanent Subcommittee on Investigations and the public [1].

Key takeaways

• Senator Richard Blumenthal has requested that Binance provide documentation and records by April 14 to address potential misrepresentations [1].
• Media reports have traced approximately $1.7 billion in flows from Binance-linked accounts to Iran-linked entities, contrasting with the $110,000 figure previously cited by the exchange [1].
• The inquiry seeks a full accounting of transactions with Iranian exchanges and details on internal compliance practices, including the handling of "drop accounts" and VPN usage [1].
• The senator raised concerns regarding the speed of Binance’s responses to law enforcement warnings about alleged terrorist financing [1].

Scrutinizing the gap in transaction reporting

The inquiry follows reporting by Fortune and The New York Times that identified $1.7 billion in flows between Binance-linked accounts and entities associated with Iran [1]. This figure stands in stark contrast to the $110,000 in direct transactions with four major Iranian exchanges that Binance reported to the Senate last year [1]. Blumenthal is now demanding that Binance disclose the methodology used to calculate that original figure and explain whether it excluded transfers later associated with Iranian entities [1].

Beyond the transaction totals, the senator is pressing for transparency regarding Binance’s internal compliance and enforcement actions [1]. He has requested specific wallet addresses and a year-over-year accounting of transactions involving Iranian exchanges [1]. Furthermore, the inquiry seeks to determine if Binance has relaxed its screening or reporting mechanisms since January 1, 2025, and whether the company has ever disciplined staff members for raising internal concerns or reporting information to law enforcement [1].

Allegations of delayed enforcement

Blumenthal’s letter highlights specific instances where he claims Binance failed to act promptly upon receiving warnings from law enforcement [1]. The senator alleged that the exchange took two months to respond to inquiries regarding entities like Hexa Whale and another two months to remove an implicated shell entity [1]. He also noted that it took at least five months for the platform to remove Blessed Trust as a vendor after being alerted to its suspected role in terrorist financing [1].

The senator further pointed to internal account tags, such as "Don’t block. Internal accounts," which he argued should have triggered heightened scrutiny rather than protection from enforcement [1]. Binance has been given until April 14 to provide the requested records, including exact dates regarding when accounts were opened, when they began interacting with Iranian intermediaries, and when they were ultimately suspended or removed [1].