US Senator Initiates Troubling Inquiry into Binance’s Iran Sanctions Compliance Lapses

Senate Probe of Binance

Sen. Richard Blumenthal has launched a Senate Homeland Security Committee probe of Binance. The investigation claims Binance allowed Iranian users to trade and fired compliance staff who flagged sanctions issues. Binance must produce records of Iranian activity since 2018 and related personnel actions.

Prior Settlement and Ongoing Risks

Binance paid over $4 billion in 2023 to settle AML and sanctions violations. New reports say internal audits found partner firms moving Iranian money, indicating lingering risks. The Senate seeks to confirm whether Binance’s present controls remedy those gaps.

Potential Industry Impact

Confirmed breaches could trigger further actions by OFAC, FinCEN and other agencies. Regulators may tighten audits, licensing and require real‑time crypto monitoring. The case would cement that crypto platforms face the same sanctions rules as banks, shaking market confidence.