TLDR
- Binance told a U.S. Senate investigation that no accounts sent crypto directly to Iranian entities.
- The exchange said its internal review found only indirect exposure to certain external wallets.
- Binance launched the review after law enforcement flagged external addresses last April.
- The company shared user records and transaction data with investigators during the probe.
- Binance removed Hexa Whale in August and offboarded Blessed Trust in January.
Binance told a U.S. Senate investigation that no accounts on its platform sent crypto directly to Iranian entities. The exchange rejected claims that $1.7 billion flowed through its systems to Iran-linked groups. The company also challenged media reports that triggered the congressional inquiry.
Binance Rejects Direct Iran Transaction Claims
Binance responded in a March 6 letter to Sen. Richard Blumenthal’s Permanent Subcommittee on Investigations. The company said its internal review found no direct transactions between Binance accounts and Iranian entities. It stated that it identified only indirect exposure to certain external wallets.
The exchange said law enforcement contacted the company last April about flagged external addresses. Authorities indicated that those addresses could connect to terrorist financing. Binance said it then launched an internal review and shared user records and transaction data with investigators.
Binance said its lawyers addressed allegations tied to Yemen’s Houthi militants. The company denied that its platform knowingly allowed funds to reach Iran-linked organizations. It stated that it acted when credible risk information surfaced.
Senate Inquiry and Compliance Response
Blumenthal opened the inquiry after media outlets reported alleged Iran-linked crypto flows. Reports from The New York Times, The Wall Street Journal, and Fortune cited internal investigators. Binance called that coverage “demonstrably false” and “defamatory in several material respects.”
The company said its internal review identified two entities, Hexa Whale and Blessed Trust. Binance said those accounts had interacted with wallets flagged by authorities. It stated that it removed Hexa Whale in August and offboarded Blessed Trust in January.
Binance also addressed claims about staff departures within its compliance team. The company said most departures were voluntary and routine. It stated that it terminated one employee for violating company policy on disclosing internal user information.
The letter outlined the company’s compliance measures and investigative process. Binance said it investigates, mitigates risk, and offboards accounts when needed. It also said it reports relevant findings to appropriate authorities.
“When there is credible risk information, Binance investigates, mitigates, offboards accounts, and reports to appropriate authorities,” the letter stated. The company added that it maintains a “rigorous compliance program” that continues to strengthen. The Senate subcommittee continues its review based on the information provided.
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