TLDR

  • Binance informed a U.S. Senate committee that its investigation revealed no direct transactions from its platform to Iranian parties.
  • The crypto exchange stated it only identified indirect connections to wallets possibly linked to Iran, which have since been terminated.
  • Binance labeled reports from the NYT, WSJ, and Fortune as “demonstrably false” and “defamatory.”
  • Two accounts, belonging to Hexa Whale and Blessed Trust, were removed following internal probes.
  • The Senate’s examination also occurs alongside increased attention on Trump-Binance connections related to a $2 billion stablecoin agreement.

Binance, the leading global cryptocurrency exchange, has issued a formal reply to a U.S. Senate investigation, stating its review uncovered no proof that any user account directly transferred cryptocurrency to Iranian entities.

In a March 6 letter, Binance responded to the Permanent Subcommittee on Investigations chaired by Sen. Richard Blumenthal. The correspondence was also sent to Sen. Ron Johnson. The inquiry was initiated in February by a group of 11 senators.

The Senate investigation was prompted by media stories alleging Binance permitted over $1 billion in crypto transfers to groups with Iranian ties. Binance completely rejected this characterization.

The company said its internal audit only discovered indirect links to wallets that might have been associated with Iran. It reported that those accounts were later removed from its platform.

Binance pinpointed two entities central to the activity: Hexa Whale and Blessed Trust. The exchange reported removing Hexa Whale last August and offboarding Blessed Trust in January after concluding its investigations.

Binance indicated the review began after law enforcement reached out to the firm last April. Officials supplied a list of external wallet addresses they believed could be tied to terrorist financing.

The exchange affirmed it cooperated completely, furnishing user records and transaction details to the investigators.

Binance Pushes Back on Media Coverage

Binance directly challenged the press reports that triggered the Senate inquiry. The firm described articles from the New York Times, Wall Street Journal, and Fortune as “demonstrably false” and “defamatory in several material respects.”

The reports had asserted that Binance dismissed employees who voiced internal worries about the transactions linked to Iran. Binance refuted this narrative.

The exchange clarified that most employee exits related to the issue were voluntary. One staff member was fired, but Binance stated the cause was a breach of company policy for sharing internal user data outside the firm.

“When there is credible risk information, Binance investigates, mitigates, offboards accounts, and reports to appropriate authorities,” the letter stated.

Senate Inquiry Comes Amid Broader Scrutiny of Binance’s U.S. Ties

The senators’ letter to Treasury Secretary Scott Bessent and Attorney General Pamela Bondi asked for a reply by March 13 regarding their plans to probe Binance. As of Friday, neither official had issued a public statement.

Binance has a regulatory history in the United States. In 2023, it settled charges for breaching sanctions and anti-money laundering laws with a $4.3 billion payment. Its former CEO, Changpeng Zhao, resigned, pleaded guilty to a felony, and served a four-month jail term.

President Trump pardoned Zhao in October. This pardon legally eliminated an obstacle to Zhao’s return to Binance, although he has stated publicly he will not resume the CEO role.

Examination of Trump’s connections to Binance intensified after a UAE-based firm, MGX, utilized the USD1 stablecoin — issued by World Liberty Financial, which has backing from Trump and his sons — to finalize a $2 billion investment in Binance. Several legislators have labeled the deal a conflict of interest.

As of March 6, the Senate subcommittee had not disclosed any subsequent steps following Binance’s response.