Binance faces Senate scrutiny over Iran-linked crypto flows

Senator Blumenthal seeks updates on Binance’s compliance monitors after reports of $1B in Iran-linked crypto flows, raising concerns over the exchange’s anti-money laundering controls.

Senator Richard Blumenthal has formally requested updates from the U.S. Department of Justice and the Treasury’s Financial Crimes Enforcement Network on the status and effectiveness of compliance monitors at Binance. This request follows reports that Binance processed over $1 billion in crypto transactions linked to Iranian accounts, despite existing U.S. sanctions. Concerns have been raised about the adequacy of Binance’s anti-money laundering and sanctions controls, especially after reports that internal investigators who flagged suspicious Iran-linked flows were dismissed. The compliance monitors were appointed as part of Binance’s $4.3 billion settlement with U.S. authorities in 2023, with oversight beginning in 2024. Lawmakers are questioning whether these monitors are active and effective, as there have been no public updates on their work. Binance has disputed some media claims, stating it continues to cooperate with authorities and has upgraded its compliance systems. The situation has intensified scrutiny of Binance’s practices and the effectiveness of federal monitorships in the crypto sector.