US senators have labeled Binance a “repeat offender” as they put together to launch an inquiry into practically $2 billion price of crypto that was despatched to Iran, elevating doubts over the trade’s dedication to a plea deal settlement with the Division of Justice.
Democrat Senator Richard Blumenthal, who represents the Subcommittee on Investigations, wrote to Binance CEO Richard Teng on Tuesday, asking him to supply data on the corporate’s position in sanction-dodging transactions to Iranian and Russian entities.
The letter reads: “Binance appears to have ignored warnings and recommendations to prevent Iranian money laundering schemes on its cryptocurrency exchange, allowing $1.7 billion in transfers to Iran. These transactions have helped prop up Iranian-linked terrorist organizations and illicit Russian oil sales.”
Sen. Blumenthal, the rating member of the Subcommittee on Investigations, wrote to Binance co-CEO Richard Teng in the present day demanding solutions about our, the WSJ, and the NYT’s reporting on potential sanctions violations and the firing of investigators: pic.twitter.com/ptjg7F6EsH
— Leo Schwartz (@leomschwartz) February 24, 2026
Blumenthal’s letter was shared by journalist Leo Schwartz.
It additionally claims that Binance is revisiting the crimes of its previous, particularly from 2023, when it was discovered responsible of costs together with sanction violations stemming from crypto despatched to Iranian entities.
“Binance is a repeat offender: it has long been aware that the Iranian regime and its terrorist proxies use its cryptocurrency platform as a convenient and reliable means to bypass international sanctions, anti-money laundering controls, and other banking restrictions,” it reads.
Blumenthal continues, “Instead of actually preventing illicit use, Binance has sought to evade accountability and influence the White House through lobbying and a financial partnership with World Liberty Financial (WLFI).”
The letter additionally claims, “The scale of the newly-revealed illicit transfers uncaught until nearly two billion dollars flowed to sanctioned entities and the unexplained firing of internal investigators call into question Binance’s compliance with American sanctions and banking laws, and its 2023 agreement to resolve the previous federal investigation.”
Blumenthal backs up his allegations by noting Binance’s deep connections with the Trump household and WLFI by promotions, and the housing of 85% of WLFi’s stablecoin USD1 in Binance accounts.
All this, he says, led to a profitable “influence campaign” that secured Changpeng Zhao’s pardon and the dismissal of a lawsuit in opposition to Binance.
Binance reportedly didn’t stick with compliance measures
The Wall Avenue Journal, Fortune, and The New York Instances have all reported on two Binance shoppers, Hexa Whale and Blessed Belief, appearing as intermediaries for Iran’s Revolutionary Corps.
These accounts allowed Iran to launder funds and commerce oil exterior the normal banking system and sanctions.
Blessed Belief repeatedly raised inside alerts on the agency. When investigators finally found the extent of funds going to Iran’s authorities, they flagged it to Binance’s prime execs earlier than they had been fired weeks later.
Richard Teng has denounced the most recent article printed by the WSJ as “defamatory” and “damaging,” claiming it ignored the responses given by Binance’s consumer.
Teng demanded that the WSJ take down its article and make corrections “immediately” or else it’d take “further action.”
Binance claimed, “While you solicited our client’s position, your failure to reflect our client’s responses is inconsistent with your ethical obligations to ‘remain fair, accurate and impartial,’ and suggests an agenda already set, which does not amount to responsible journalism.”
The crypto trade refuted how the WSJ framed the firings, famous that it did take away the flagged accounts after they had been found, and disputed any suggestion that Binance had some type of entry and management over the Blessed account.
Blumenthal desires Binance to cough up paperwork
Blumenthal’s inquiry has ordered Binance to submit a trove of paperwork associated to the doubtful accounts, the inner stories filed by compliance investigators, use of Binance by Iranians, using Tether and USD1 in connection to criminals, Binance’s use in unlawful oil gross sales, and particulars concerning the firing of its investigators.
