Eleven Democrats on the US Senate Banking, Housing and Urban Affairs Committee are pushing the Trump administration to investigate Binance over allegations that the exchange facilitated illicit financial activity linked to Iran and may be violating its 2023 federal settlement.
In a letter sent Friday to Attorney General Pam Bondi and Treasury Secretary Scott Bessent, the senators called on the Justice Department and the Treasury Department to conduct a “prompt, comprehensive review” of Binance’s sanctions compliance controls.
The lawmakers cited recent media reports that billions of dollars in digital assets flowed through the platform to Iranian entities, including groups linked to terrorism.
The letter was led by Sen. Mark Warner and signed by Ranking Member Elizabeth Warren along with Sens. Chris Van Hollen, Jack Reed, Catherine Cortez Masto, Tina Smith, Raphael Warnock, Andy Kim, Ruben Gallego, Lisa Blunt Rochester and Angela Alsobrooks.
According to the senators, last year Binance compliance staff uncovered evidence that around $1.7 billion in digital assets had been routed through the exchange to Iranian entities, including the Iran-backed Houthis and the Islamic Revolutionary Guard Corps.
In one case, a Binance vendor allegedly moved $1.2 billion in funds linked to actors linked to Iran. The letter also claims that Iranian users gained access to more than 1,500 Binance accounts and that the platform may have been used in efforts by Russian actors to evade sanctions.
Lawmakers raised concerns that employees who identified the transactions were fired and that Binance has become less responsive to law enforcement requests. They argued that such actions would conflict with the company’s obligations under its 2023 plea agreement and related settlements.
In 2023, Binance pleaded guilty to federal charges, including violations of US sanctions laws and failed anti-money laundering efforts. The company agreed to pay more than $4 billion in fines and committed to sweeping reforms under U.S. oversight, including improved know-your-customer procedures and sanctions screening.
The senators argue that recent reports call into question whether these reforms have been implemented and sustained. In its settlement with the Treasury Department’s Office of Foreign Assets Control, Binance committed to implementing controls capable of identifying and blocking prohibited transactions.
Allowing $1.7 billion in digital assets to move to sanctioned Iranian entities, they wrote, would violate that obligation.
Binance and President Donald Trump
The letter also touched on Binance’s recent business dealings involving President Donald Trump and his family’s crypto ventures. Lawmakers pointed to the exchange’s promotion of USD1, a stablecoin issued by World Liberty Financial, a Trump family-backed project.
According to the letter, Binance offered interest incentives to users with USD1, assisted with technology related to the token and accepted a $2 billion investment tied to it.
The senators also referred to Trump’s pardon last fall of Binance founder Changpeng Zhao, who had pleaded guilty to failing to implement an effective anti-money laundering program and served a four-month prison sentence.
The lawmakers argued that those connections heighten the need for what they described as a “thorough, impartial” investigation.
Binance’s questionable ties to Russia
In addition to Iran-related concerns, the letter cites Binance’s recent launch of crypto-linked payment cards in parts of the former Soviet Union. The senators warned that similar products have been used to circumvent restrictions on the Russian financial system.
They also noted the exchange’s partnership with Kyrgyzstan to launch a stablecoin and digital currency initiative that raises questions about exposure to sanctions evasion risks.
“These allegations raise serious concerns that poor illicit financial controls at Binance remain a significant threat to national security,” the senators wrote. They warned that lax security measures at the world’s largest digital asset exchange could allow terrorist groups or sanctions evaders access to the global financial system.
A spokesperson for Binance disputed the allegations, stating that the company detected and reported suspicious activity and that claims of retaliation against compliance staff are false.
The company has said it remains committed to meeting its regulatory obligations under the 2023 agreements.
The senators requested a response from Bondi and Bessent by March 13.