Binance
February 23, 2026
After reports emerged that Binance may have allowed transactions linked to Iran Russia crypto networks, U.S. Senator Richard Blumenthal has opened an inquiry, asking Binance to produce all records of the use of Binance by Iran-connected entities, Hexa Whale, and Blessed Trust.
The probe will also look into allegations that Binance leveraged its WLFI Trump ties to evade accountability and influence the White House.
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Why the Binance Sanctions Investigation Centers on Iran, Russia, and WLFI
Two years after Binance pleaded guilty to sanctions evasion and failure to register as a money transmitting business, it has landed in another hurdle. Senator Richard Blumenthal, in a letter to Binance, said,
“Binance appears to have ignored clear warning signs, knowingly allowed illicit accounts to operate, and even provided hands-on support to entities engaged in money laundering.”
Talking about reports on how employees involved in reporting or investigating the Iranian transactions were dismissed, Blumenthal added,
“Alarmingly, the investigators that raised concerns about these prohibited Iran-linked transactions were subsequently suspended or fired, creating the appearance of retaliation by Binance executives.“
Calling Binance a repeat offender, Richard Blumenthal reiterated how the exchange had previously transferred funds to sanctioned entities, for which it later pleaded guilty, and its CEO, Changpeng Zhao, was subsequently sentenced to four months in prison.
Apart from the Iran Russia crypto ties, the Senate inquiry is also looking into Binance’s financial involvement with WLFI (World Liberty Financial), a cryptocurrency firm linked to Trump’s family.
In the letter, Blumenthal sheds light on how, after the partnership between WLFI and Emirati Sheikh Tahnoon bin Zayed Al Nahyan, Binance suddenly got a more prominent role, with 85% of WLFI’s (USD1) stablecoins currently held on the exchange.
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Binance Responds to Charges, Cites Best-in-Class Compliance Program
After The Wall Street Journal published a report that Binance had terminated investigators who uncovered a $1 billion transfer to Iran, Binance CEO Richard Teng responded on X. He wrote,
“The Wall Street Journal published defamatory claims, and despite our efforts to set the record straight, the journalist failed to acknowledge any of our corrections on the allegations. We have sent the attached letter demanding immediate corrections and a full retraction of these false statements.”
In a release, Binance discussed the changes it has undertaken over the years to minimize exposure to sanctioned entities, as well as the reviews and audits it has undergone.
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Underlining the constant reduction in exposure, the release read,
“We have significantly reduced exposure to sanctioned entities and high-risk jurisdictions, including exposure linked to Iranian cryptocurrency exchanges, over the last several years, with continued reductions in 2025.”
On the allegations of the Iran crypto ties, the release read,
“With respect to exposure to Iranian cryptocurrency exchanges specifically, between January 2024 and January 2026, Binance reduced direct exposure to the four top exchanges by more than 97.3%, from $4.19 million to $110,000.”
The next few weeks are crucial for Binance, with lawmakers seeking transparency and hard evidence. Adding to Binance’s woes, the deadline to submit records is a little over a week away.
