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US lawmakers want regulators to investigate Binance over alleged transfers of $1.7 billion to entities linked to Iran. These concerns come at a particularly interesting time amid rising geopolitical tensions in the Middle East. However, Binance has already refuted such accusations.
In a letter, 11 lawmakers led by Senators Chris Van Hollen and Elizabeth Warren urged Treasury Secretary Scott Piscent and Attorney General Pam Bondi to launch a formal investigation.
US lawmakers warn that censorship of Binance may be at risk
Senators have raised serious concerns about the strength of the controls Binance Against illicit finance And their compliance with sanctions and anti-money laundering laws .
“These allegations raise serious concerns that weak illicit financial oversight at Binance remains a significant threat to national security. Our illicit financial controls are seriously compromised if large sums of money pass through Binance to terrorist groups or evade sanctions. The company controls the world’s largest digital asset exchange; it is imperative that bad actors do not take advantage of its platform.” said Legislators.
According to reports cited by lawmakers, investigators discovered at least two Binance accounts. These accounts were used to transfer assets into Parties linked to the Iran-backed Houthis And the Islamic Revolutionary Guard.
Additionally, reports have claimed that Iranian citizens have successfully accessed more than 1,500 Binance accounts.
The senators described the incident as an indicator of a “broader deterioration” in Binance’s compliance functions. They warned that the movements of the funds directly threaten… The historic agreement of the 2023 scholarship with the American authorities.
Under the plea agreement, Binance paid a fine of $4.3 billion Its founder, Changping Zhao, He left as CEO. The company also agreed to strict oversight by an independent compliance monitor imposed by the Department of Justice.
Lawmakers argued that the alleged illegal transfers were consistent with a broader pattern of dangerous behavior.
They highlighted Binance’s launch of payment cards in parts of the former Soviet Union, which they say provides a backdoor for Russian entities to avoid international sanctions.
“In light of these issues, we are very concerned that Binance may once again prioritize profits over its compliance obligations,” the lawmakers argued.
The two senators described the situation as a serious threat to national security, and gave the Department of the Treasury and the Department of Justice until March 13, 2026, to detail the results of their investigations.
If authorities determine that Binance has violated the terms of its 2023 probation, the exchange could face catastrophic legal and financial repercussions.
Binance sells compliance efforts
In a strong response to the accusations, Binance defended its internal controls and pointed to a sharp drop in illicit activity on its platform.
According to the company, its exposure related to sanctions fell by 96.8% in the 18-month period, from 0.284% in January 2024 to just 0.009% in July 2025.
The company linked this progress With a “best-in-class” compliance program. She argued that recent reports present a distorted view that misunderstands the standard processes of control of digital asset platforms.
Binance said that in the specific incidents reported by the media, it acted proactively, mitigated the risks, removed the offending accounts, and coordinated with law enforcement.
“The facts are: Binance’s compliance program is effective and has worked here. Any claim to the contrary is simply false.” I conclude Exchange.
