Market News

US Senate Probes Binance Over Alleged $1.7 Billion Sanctions Violations

Binance, one of the leading cryptocurrency exchanges, is currently under investigation by the US Senate due to allegations regarding significant sanctions violations.

Senator Richard Blumenthal has formally requested documents from Binance, linked to approximately $1.7 billion in transactions tied to Iran.

Reports suggest that these transactions may have facilitated not only money laundering but also supported terrorist organizations and illicit oil sales.

The Senate’s Permanent Subcommittee on Investigations is particularly interested in Binance's compliance practices and its handling of sanctioned entities.

Binance has reportedly identified around 2,000 user accounts associated with Iranian entities, despite claiming to restrict access to such users.

Additionally, internal reviews indicated that Binance’s partners might have been involved in laundering activities related to Iranian government-linked organizations.

Although Binance has rejected the allegations, asserting a lack of evidence for any violations, the scrutiny highlights ongoing regulatory concerns in the cryptocurrency sector.

The exchange pointed to a substantial enhancement of its compliance systems since a settlement in 2023, claiming a dramatic decrease in sanctions-related exposure.

As of the latest updates, Binance's token, BNB, experienced a notable uptick in value, reflecting a slight recovery in the broader crypto market.

This investigation underscores the continuing challenges that crypto exchanges face in maintaining compliance amidst regulatory pressure.