US Senate Launches Investigation into Binance‘s Sanctions Compliance
The cryptocurrency exchange Binance is once again under the congressional microscope, as Senator Richard Blumenthal has launched an inquiry into the platform’s alleged facilitation of transactions tied to sanctioned entities in Iran and Russia. This probe, which follows previous legal settlements and regulatory scrutiny, signals a continued focus on the exchange’s compliance with international sanctions.
Allegations and Concerns
The investigation stems from reports suggesting that Binance processed a significant volume of transactions, estimated at $1.7 billion, that may have violated US sanctions against Iran. Furthermore, the inquiry is examining potential links between Binance and entities involved in circumventing sanctions on Russian oil exports. Senator Blumenthal, citing reporting from reputable news outlets, has requested a detailed review of Binance‘s internal records, including communications, account data, and compliance reports.
Binance‘s Response and Defense
Binance has vehemently denied the allegations, emphasizing its commitment to regulatory compliance and its efforts to identify and report suspicious activities. The exchange maintains that it does not permit Iranian users on its platform and has invested heavily in strengthening its compliance infrastructure. Binance CEO Richard Teng has publicly contested the accuracy of the reports and demanded retractions, asserting that the claims are defamatory. The company points to a significant reduction in its exposure to high-risk jurisdictions, claiming a substantial decrease in trading volume from such regions.
