Blumenthal Seeks Answers on Binance Iran Sanctions Case

TLDR

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Sen. Richard Blumenthal sent letters to the DOJ and Treasury about Binance compliance oversight.
He questioned the status of the independent monitor imposed under Binance’s 2023 settlement.
Binance agreed to pay over $4 billion after pleading guilty to sanctions and money transmission violations.
Reports allege Binance partners enabled trades linked to Iranian government entities.
Blumenthal requested documents and set an April 24 deadline for responses.

Sen. Richard Blumenthal has asked federal officials to clarify oversight of Binance after reports tied the exchange to Iran sanctions evasion. He sent letters on Friday to the Justice Department and the Treasury Department. He requested records about the independent monitor required under Binance’s 2023 settlement.

Binance Compliance Monitor Under Senate Scrutiny

Blumenthal addressed his letters to Acting Attorney General Todd Blanche and FinCEN Director Andrea Gacki. He focused on the three-year compliance monitor imposed after Binance pleaded guilty in November 2023. The exchange agreed to pay over $4 billion and admit failures tied to money transmission and sanctions laws.

Blumenthal wrote, “These reports raise questions regarding the extent to which the company has adhered to its 2023 settlements.” He asked whether the monitor remains in place and whether misconduct reports were filed. He also requested related documents and set an April 24 deadline for responses.

Bloomberg reported in 2025 that Binance neared a deal with the DOJ to end the monitor early. Blumenthal asked officials to confirm the monitor’s current status. He also asked whether any compliance concerns reached federal authorities.

The inquiry follows media reports from The New York Times, Fortune, and The Wall Street Journal. Those reports said Binance compliance staff identified partners that enabled trades with Iranian government-linked entities. Binance has disputed claims that it ignored internal warnings.

Reports named Hexa Whale and Blessed Trust as intermediaries in alleged laundering schemes. The outlets said investigators who reviewed Iranian transactions faced discipline or dismissal. However, Binance declined to comment on Blumenthal’s latest letters.

Iran Sanctions Reports Drive New Oversight Push

Blumenthal serves as the top Democrat on the Senate Permanent Subcommittee on Investigations. The panel reviews compliance with federal laws and probes financial misconduct. He previously contacted Binance CEO Richard Teng about sanctions reporting.

In his latest letter, Blumenthal cited early 2026 reporting on Iran-linked transactions. He wrote that Binance had “facilitated billions of dollars of sanctions evasion for Iran-linked entities.” He asked DOJ and Treasury to explain how they supervise the settlement terms.

Binance’s former CEO Changpeng Zhao pleaded guilty as part of the 2023 case. He later served four months in prison after federal charges. President Donald Trump pardoned Zhao in October.

Blumenthal’s letters request updates on communications between Binance and regulators. He also asked whether officials reviewed internal investigations tied to Iranian trades. The DOJ and FinCEN did not respond to media requests for comment.

Binance declined to comment on the letters sent Friday. The exchange continues to operate under the settlement terms announced in 2023. Blumenthal requested written responses from federal officials and Binance by April 24.

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