US Senate Opens Probe Into Binance: $1.7 Billion Allegedly Flowed to Iran and Russia
📋 En bref (TL;DR)
- Senate investigation : Senator Richard Blumenthal opens probe into Binance over alleged $1.7 billion in transfers to Iranian and Russian entities
- Whistleblowers fired : Internal investigators were allegedly suspended or dismissed after discovering these illicit transactions
- Intermediaries identified : Two Hong Kong companies, Hexa Whale and Blessed Trust, allegedly served as money laundering channels
- Terrorism links : Transfers allegedly reached Yemen’s Houthis and Iran’s Islamic Revolutionary Guard Corps
- Political context : The investigation comes after founder Changpeng Zhao received a presidential pardon in October 2025
- Binance denies allegations : The exchange claims strict KYC procedures and no Iranian users on its platform
U.S. Senator Richard Blumenthal, a senior member of the Senate Homeland Security Committee, opened a preliminary investigation into Binance on Tuesday. The crypto exchange faces serious allegations: facilitating $1.7 billion in transfers to internationally sanctioned entities, particularly in Iran and Russia.
Explosive revelations in American media
The investigation follows a series of articles published by the Wall Street Journal, the New York Times, and Fortune. These journalistic investigations reveal that Binance’s internal investigators allegedly discovered a money laundering network in late 2025 involving two exchange partners: Hexa Whale and Blessed Trust, two Hong Kong-based companies.
According to documents reviewed by these outlets, these entities allegedly served as intermediaries for transfers to sanctioned organizations. Even more alarming: investigators allegedly identified flows to wallets associated with Iran’s Islamic Revolutionary Guard Corps and payments to crew members of Russia’s “shadow fleet” — ships that circumvent oil sanctions.
Were whistleblowers silenced?
One of the most troubling aspects of this case concerns the fate of internal investigators. According to the New York Times, employees who identified these suspicious transactions and recommended corrective measures were allegedly suspended or fired.
In his letter to CEO Richard Teng, Senator Blumenthal requests explanations regarding “the suspension and dismissal of compliance staff and investigators” who flagged these alleged violations. This situation creates, in his view, “an appearance of retaliation by Binance executives.”
Documents also suggest that Binance allegedly granted VIP status to Hexa Whale despite suspicions about the use of false documents. The exchange allegedly identified 2,000 accounts associated with Iranian entities on its platform, even though it officially claims to ban Iranian users.
An explosive political context
This investigation comes at a particularly sensitive time. Senator Blumenthal points to the links between Binance and World Liberty Financial (WLFI), the crypto company owned by President Trump’s sons and his special envoy Steve Witkoff. According to the Senate letter, approximately 85% of WLFI’s stablecoins are held in Binance accounts.
The senator does not hesitate to draw a connection between this partnership and recent decisions favorable to Binance: the SEC dropping its lawsuit in May 2025 and especially the presidential pardon granted to founder Changpeng Zhao in October 2025. “This influence campaign has worked,” he writes.
Binance defends itself vigorously
Facing these accusations, Binance maintains a defensive position. “The previous New York Times reporting is wrong. Binance has strict KYC and compliance procedures in place, and there are no Iranian users on the platform,” a spokesperson told CoinDesk.
The exchange recalls that in November 2023, it had already agreed to pay $4.3 billion in fines and exit the U.S. market to resolve similar charges. A compliance monitor was appointed to oversee improvements to internal procedures.
Binance claims to have “detected and reported suspicious activity” and that this proves the effectiveness of its controls. The exchange announced that a full report would be submitted to the U.S. Department of Justice.
A worrying escalation in crypto money laundering
This case is part of a broader context of rising illicit activity in crypto. According to TRM Labs, after years of decline, illicit cryptocurrency use surged 147% in 2025, with a notable increase in transfers to wallets linked to sanctions evasion and terrorist financing.
Tether (USDT), the cryptocurrency used in the alleged Binance scheme, has become a preferred money laundering tool for the Revolutionary Guards, sanctioned Iranian banks, and Iranian weapons manufacturers.
What comes next in this investigation?
Senator Blumenthal’s investigation is just beginning. He is asking Binance to provide detailed documents about its relationships with Hexa Whale and Blessed Trust, as well as the circumstances surrounding the dismissal of internal investigators.
This case could have significant repercussions for the crypto industry, particularly in the United States where the debate over exchange regulation remains heated. It also raises questions about the effectiveness of past compliance agreements and the ability of major platforms to truly prevent illicit uses.
📚 Glossary
- KYC (Know Your Customer) : Identity verification procedures required for financial institutions, aimed at preventing money laundering and terrorist financing.
- International sanctions : Restrictive measures imposed by countries or international organizations against states, entities, or individuals, prohibiting financial transactions among other things.
- Tether (USDT) : Dollar-pegged stablecoin, the most widely used in the world with a market cap exceeding $100 billion.
- Shadow fleet : Collection of vessels used to transport Russian oil while circumventing Western sanctions, often under flags of convenience.
- Compliance : All processes implemented by a company to comply with current regulations, particularly regarding anti-money laundering efforts.
Frequently Asked Questions
Why is Binance under investigation by the US Senate?
Senator Richard Blumenthal is investigating alleged transfers of $1.7 billion to Iranian and Russian entities under sanctions. Internal whistleblowers were allegedly fired after discovering these transactions.
Which entities are involved in the alleged Binance money laundering?
Two Hong Kong companies, Hexa Whale and Blessed Trust, allegedly served as intermediaries for transfers to Iran’s Revolutionary Guards, Yemen’s Houthis, and Russia’s shadow fleet.
What is Binance’s position on these allegations?
Binance denies the allegations, claiming strict KYC procedures and no Iranian users. The exchange states it detected and reported suspicious activity, proving its controls work.
What is the connection to Changpeng Zhao’s presidential pardon?
Senator Blumenthal points to partnerships between Binance and World Liberty Financial (a Trump family crypto company) and suggests this influence may have facilitated the SEC dropping charges and the October 2025 presidential pardon.
📰 Sources
This article is based on the following sources:
- Official statement from Senator Blumenthal – February 25, 2026
- CoinDesk – Sen. Blumenthal probes Binance over alleged $1.7 billion in crypto Iran-linked transactions
- The New York Times – Senator Blumenthal Opens Inquiry Into Iran Transactions on Binance
How to cite this article: Fibo Crypto. (2026). US Senate Opens Probe Into Binance: $1.7 Billion Allegedly Flowed to Iran and Russia. Retrieved from https://fibo-crypto.fr/en/blog/binance-senate-investigation-iran-russia-blumenthal
