Blumenthal targets Binance, Tether, Trump crypto firms
6.6 Regulation Senator Blumenthal demands records from Binance, Tether, and Trump-linked crypto firms by Jan 4, 2027, warning of subpoenas for noncompliance. The probe targets alleged illicit activities and may affect stablecoin markets.
Senator Richard Blumenthal has formally requested records from Binance, Tether, World Liberty Financial, and Fight Fight Fight LLC, setting a compliance deadline of January 4, 2027. The investigation focuses on alleged illicit activities, including claims that Binance enabled transactions with sanctioned entities in Iran and Russia, and that Tether’s USDT stablecoin was used in Iranian financial networks. World Liberty Financial and Fight Fight Fight LLC, both reportedly linked to Donald Trump, are under additional scrutiny for their crypto-related business dealings. Blumenthal cautioned that failure to comply could result in subpoenas or other enforcement actions. The deadline aligns with a potential shift in Congressional power, which could grant Blumenthal greater authority to compel document production. The probe may affect stablecoin liquidity and reputational risk for the firms involved, while broader market impacts are likely to be sentiment-driven. This investigation highlights increased regulatory oversight at the intersection of politics and the crypto industry.
