Crypto exchange Binance has pushed back against an inquiry from U.S. Senator Richard Blumenthal, arguing that the investigation relies on inaccurate and misleading reporting about alleged sanctions violations involving Iran.
In a public letter, the exchange said the reports referenced in the senator’s inquiry were “demonstrably false” and lacked credible evidence. Blumenthal, a member of the U.S. Senate Homeland Security Committee, opened the investigation in February after media coverage suggested that some Binance partners may have facilitated transactions linked to Iranian entities.
Partners Removed After Internal Compliance Review
According to Binance, two Hong Kong based partners, Hexa Whale and Blessed Trust, were found to have indirect exposure to wallet addresses potentially connected to Iran. Following an internal review and law enforcement inquiries, the exchange said it terminated its relationship with both firms.
The company stated that no Binance account conducted direct transactions with Iranian entities and emphasized that the issue involved indirect wallet exposure rather than confirmed violations.
Exchange Highlights Compliance Measures and Risk Monitoring
Binance said it uses more than 25 monitoring tools for transaction screening, sanctions compliance and behavioral analysis. These measures have reduced exposure to wallets linked to illicit activity by roughly 97%, falling from 0.284% of total trading volume to about 0.009%.
The exchange also reported that exposure to four major Iranian cryptocurrency exchanges dropped sharply over the past two years, declining from $4.19 million to approximately $110,000.
Disclaimer
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