Sen. Richard Blumenthal Probes Binance Over $1.7B Iran Allegations — A Fresh Test for Crypto Regulation?

U.S. Senator Richard Blumenthal, ranking member of the Senate Permanent Subcommittee on Investigations, has launched a formal inquiry into Binance concerning allegations that the crypto exchange facilitated nearly $1.7 billion in transactions tied to Iranian entities and Russia’s sanctions-evasion "shadow fleet." Blumenthal requested extensive documentation from co-CEO Richard Teng regarding Iranian user activity, shadow fleet transactions, and the use of stablecoins like USDT to evade sanctions, demanding responses by March 6. The probe follows investigative reports alleging that Binance's internal investigators found evidence of over $1 billion in USDT routed to Iran-linked entities, including those associated with the Islamic Revolutionary Guard Corps (IRGC), and that compliance staff recommendations to restrict high-risk accounts were allegedly ignored. Binance strongly denies violating sanctions laws, stating its internal review found no evidence of wrongdoing and emphasizing that it has drastically reduced its sanctions exposure by over 96% since its landmark 2023 U.S. settlement. This renewed scrutiny tests the effectiveness of Binance's recent compliance upgrades following its $4.3 billion settlement and founder Changpeng Zhao’s guilty plea and subsequent prison sentence.

(Source：CCN)