TLDR
- Binance informed U.S. Senate investigators that zero direct transactions occurred between its platform and Iranian entities
- The company reported discovering only indirect connections to potentially Iran-associated wallets, which were subsequently removed
- The exchange labeled coverage from NYT, WSJ, and Fortune as “demonstrably false” and “defamatory”
- Hexa Whale and Blessed Trust had their accounts terminated following internal reviews
- Senate scrutiny expanded to include Trump-Binance connections involving a $2 billion stablecoin transaction
Binance, the global leader in cryptocurrency exchanges, has delivered its official response to U.S. Senate investigators, asserting that zero evidence exists showing any account holder sent cryptocurrency directly to Iranian entities.
Dated March 6, the exchange’s letter addressed Sen. Richard Blumenthal’s Permanent Subcommittee on Investigations and Sen. Ron Johnson. Eleven senators initiated the inquiry during February.
Media organizations published reports alleging Binance facilitated over $1 billion in crypto transactions flowing to Iran-connected groups, prompting the Senate investigation. Binance rejected these characterizations comprehensively.
According to the exchange, internal investigations revealed only indirect exposure to wallets potentially associated with Iran. These accounts received immediate removal from the platform.
Two entities emerged as central to the investigated activity: Hexa Whale and Blessed Trust. Binance removed Hexa Whale in August of the previous year, while Blessed Trust was offboarded in January following completed investigations.
Law enforcement initiated contact with Binance in April, triggering the internal review. Authorities shared a list of external wallet addresses potentially connected to terrorist financing.
Binance provided complete cooperation, supplying user records and transaction information to investigating authorities.
Exchange Challenges Media Narrative
Binance directly challenged the journalism that prompted the Senate investigation. The exchange characterized reporting from the New York Times, Wall Street Journal, and Fortune as “demonstrably false” and “defamatory in several material respects.”
These publications alleged that Binance terminated employees who internally raised concerns about Iran-linked transactions. Binance rejected this narrative.
Most employee departures connected to this matter occurred voluntarily, according to the exchange. A single termination took place, which Binance attributed to policy violations involving unauthorized external sharing of internal user information.
“When there is credible risk information, Binance investigates, mitigates, offboards accounts, and reports to appropriate authorities,” the letter stated.
Senate Investigation Expands Amid Trump Connection Questions
Senators requested Treasury Secretary Scott Bessent and Attorney General Pamela Bondi respond by March 13 regarding potential investigations into Binance. Neither official had issued public statements by Friday.
U.S. regulatory history with Binance includes a 2023 settlement worth $4.3 billion for sanctions violations and anti-money laundering law breaches. Former CEO Changpeng Zhao resigned and admitted guilt to a felony charge, completing a four-month incarceration.
President Trump issued a pardon for Zhao in October. The pardon legally eliminated restrictions preventing Zhao from returning to Binance leadership, though he has publicly stated he will remain removed from the CEO position.
Trump’s Binance connections have attracted increased attention following a $2 billion Binance investment by UAE-based firm MGX. The transaction utilized USD1 stablecoin, issued by World Liberty Financial, which receives backing from Trump and his sons. Several lawmakers have characterized this arrangement as presenting conflict of interest concerns.
The Senate subcommittee had announced no additional actions following Binance’s March 6 response.
