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US Senators Investigate Binance Over Alleged $1.7 Billion Transfers to Iran

US Senators have intensified scrutiny of Binance, labeling the exchange a “repeat offender” amid revelations of nearly $2 billion transferred to Iranian entities.

Democrat Senator Richard Blumenthal has initiated an inquiry into these transactions, questioning Binance's compliance with US sanctions.

In a formal letter, Blumenthal cited concerns that Binance facilitated $1.7 billion in transfers, aiding organizations linked to Iranian terrorism and illicit Russian oil trades.

The senator’s inquiry highlights allegations of ignored warnings regarding potential money laundering schemes occurring on the platform.

Internal investigations at Binance reportedly uncovered these violations, yet those involved were allegedly dismissed before the findings were escalated.

Binance’s CEO, Richard Teng, has rejected these claims, stating that the exchange maintains strict compliance measures against illegal transactions.

In light of these events, Binance was previously found guilty in 2023 for similar sanction violations, raising further questions about its operational integrity.

Blumenthal’s request includes document submissions related to flagged accounts and internal compliance investigations that may reveal the extent of the alleged violations.

The situation signifies a growing examination of how crypto exchanges manage regulatory compliance and their accountability to US laws.

As this inquiry evolves, it remains essential for stakeholders in the crypto industry to closely monitor Binance's responses and the potential implications for the wider market.