Blumenthal Demands Update on Binance Monitor Over Iran Scrutiny

Sen. Richard Blumenthal requested updates from the Justice Department and the Treasury Department’s Financial Crimes Enforcement Network on the court-ordered monitor overseeing Binance’s 2023 anti-money-laundering and sanctions compliance program. He cited concerns about alleged failures to prevent illicit transactions tied to Iran.

In letters to DOJ and FinCEN, Blumenthal asked whether Binance is meeting the monitoring and reporting requirements set by the 2023 settlement and requested details on steps officials have taken to verify compliance. The 2023 agreement required the exchange to pay $4.3 billion to resolve civil enforcement actions and followed a guilty plea by former CEO Changpeng Zhao to a felony charge.

Blumenthal wrote he was alarmed by “mounting allegations of dangerously lax anti‑money laundering prevention by Binance” and sought the monitor’s findings, records of any enforcement actions, and whether agency oversight has uncovered breaches of U.S. sanctions.

The inquiry follows scrutiny of Binance over possible violations of U.S. sanctions on Iran and reports that the company fired staff who warned executives about roughly $1 billion in transfers tied to Iran-linked entities; Binance has denied those claims. Officials at DOJ and FinCEN who oversee the monitor declined to comment.

The monitor is tasked with assessing Binance’s internal controls, reporting systems and efforts to prevent illicit finance. Under the settlement, regulators can recommend additional enforcement or requirements if they find the company is not meeting the agreement. Earlier this year, a bipartisan group of senators asked Treasury and Justice officials to complete a review of Binance’s compliance controls.