| Key Points: – Senators launch new Binance inquiry, label it repeat offender on sanctions/AML. – Probe tests plea-deal compliance, especially Iranian sanctions controls and governance reforms. – Letters seek proof internal controls, reporting lines, escalation procedures function under monitorship. |
U.S. senators have opened a new inquiry into Binance, framing the exchange as a repeat offender on sanctions and anti–money laundering controls despite a 2023 plea agreement and ongoing monitorship. The focus is whether Iran-linked activity persisted, and whether governance changes promised under the settlement have taken hold.
According to Protos, the inquiry questions Binance’s adherence to its 2023 plea deal and seeks details related to Iranian sanctions compliance, using the “repeat offender” label in light of newly reported flows. The letter-based review is designed to test whether internal controls, reporting lines, and escalation procedures are operating as required under a monitorship.
What senators allege: Iran-linked crypto transfers and 1,500 accounts
According to Decrypt, Senator Richard Blumenthal launched an inquiry into alleged Iran-linked crypto transfers totaling around $1.7 billion, with scrutiny of Binance’s sanctions controls. The review centers on whether the platform enabled activity that would breach U.S. restrictions and whether remediation commitments were met.
As reported by The Jerusalem Post, people in Iran were able to access more than 1,500 Binance accounts in the prior year. Lawmakers argue such access, even if indirect, raises sanctions-evasion risks that require detailed transaction tracing and internal audit records.
Evidence cited so far and what’s documented
The evidentiary record to date consists of lawmakers’ letters, media investigations, and requests for internal documentation such as compliance reports and flagged-account logs. In sanctions matters, these materials help establish whether screening, geofencing, and escalation controls worked as designed, and whether any gaps were remediated on time.
One line of scrutiny is whether monitorship-era governance is functioning in practice; concerns intensified after media reports alleged compliance investigators were dismissed. “That’s rather shocking that that happened under a monitorship with [Binance] internal investigators,” said Robert Appleton, partner at Olshan Frome Wolosky and a former Department of Justice lead on Iran cases, in comments to Fortune.
Binance has publicly pushed back. Based on data from Coin360, the company has emphasized denials of retaliation claims and highlighted a roughly 97% drop in sanctions-related exposure since January 2024.
Reported $1.7–$2B flows and account access figures
Media estimates place alleged Iran-linked flows in the $1.7–$2 billion range, while access figures cite more than 1,500 accounts tied to users in Iran over the past year. The variance in totals reflects differing periods, datasets, and on-chain methodologies across the reports.
From a controls perspective, investigators typically reconcile wallet-level traces with exchange-side KYC, device, and IP telemetry to determine whether circumvention occurred. Senators appear to be seeking this reconciliation to validate or refute the reported figures.
Letters, media reports, and inquiry requests in focus
According to DailyCoin, the probe also examines potential sanctions issues linked to Iran and Russia, alongside broader questions about Binance’s compliance practices. Such inquiries commonly request internal audit trails, sanctions-screening alerts, and case management histories to assess effectiveness and timeliness of escalations.
As reported by The Block, media investigations have also pointed to intermediary entities, such as Hexa Whale and Blessed Trust, while the Senate letter seeks details tied to Iranian sanctions and the 2023 plea commitments. Document requests of this kind typically test accountability for any alerts that were suppressed, dismissed, or inadequately escalated.
At the time of this writing, Coinbase Global (COIN) traded near $157.67 on Nasdaq real-time pricing, a neutral data point included for context only.
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